SUCHITA S NAIK ROLL NO: 79 MMS- IV (FINANCE) BGIMS

DEBT FINANCING AS A SOURCE OF CORPORATE FINANCE

1. What is financing Introduction Types of financing instruments Why debt and why not equity Difference between debt and equity products 2. What is debt Introduction Payment Types of debt Debt syndication Non fund base debt Accounting of debt Debt inflation and the exchange rate Debt ratings, risk and cancellation Effects of debt Arguments against debt Levels and flows 3. Debt financing Introduction to debt financing Why debt financing Pros and Cons of debt financing What do lenders look for Sources of debt Debt financing cheaper than equity financing?

 Short and long term financing Tax benefits by debt financing 4. Corporate finance Introduction to CF Capital investment decisions i. The investment decisions ii. Project valuation iii. Valuing flexibility The financing decision The dividend decision Relationship with other types of finance 5. Cost of capital What is cost of capital How debt benefits Shareholders Wealth maximization Proportion of debt to be involved in business 6. How company evaluates/ valuates the debt instruments Bond valuation Corporate bonds Credit rating to debt instruments 7. Debt financing in different Corporate sectors Automobile and Manufacturing IT Sector