Course Fee


CPD Hour


This CPE course explores capital structure and the impact to a business as a result of a change in capital structure. It reflects on traditional views of gearing, and reports on US ecomonists Modigliani and Miller’s challenge of that view. It recommends adjustments to M & M’s theories based on real world capital structures, and examines how companies and groups of companies structure debt. The course also investigates how shareholder wealth is affected by a company’s dividend policy, and examines those policies in practice.

Topics Discussed:
• Capital structure theories
• Calculation of cost of equity or weighted average cost of capital (WACC) to reflect a change in capital structure
• Structuring the debt/equity profile of group companies, including tax implications and thin capitalization rules
• Impact of scrip dividends on shareholder value and entity value/financial statements/performance measures
• Impact of share repurchase programs on shareholder value and entity value/financial statements/performance measures
• Implications for shareholder value of alternative dividend policies including Modigliani and Miller’s theory of dividend irrelevancy
• Development of appropriate dividend policy taking into account the interests of shareholders and the cash needs of the entity


CPA Credit Hour : 1.5 hour                                                   

Member Fee: $ 306  | Non Member Fee: $ 385 | CGMA Holder: $ 228                                     

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* All prices are subject to change without prior notice due to currency fluctuation