Course Description

Have you ever wondered why a company chooses certain ways of capital funding over others? Through analysis, discussion questions, and a review of prevailing financial theory, this course explores why some companies choose debt financing, while others choose equity financing.

Learning Objectives

  • Explain signaling theory, the Modigliani-Miller theorem, and some of the other ideas that inform our understanding of optimal capital structure

  • Calculate Weighted Average Cost of Capital (WACC)

  • Determine the components of WACC and approximations that are used for each component

  • Discuss the reasons a company might use debt vs. equity financing

Additional Required Materials

  • Level: Overview

  • Field of Study: Finance (NASBA)

  • Who Should Attend: Financial professionals, CPAs, Controllers and Accountants who are looking to gain a better understanding of the theoretical and practical considerations that go into capital funding decisions

  • Required Knowledge: Basic knowledge of corporate finance

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.