Objectives and the Need for Financial Capital

Sure making money is important, but we all know that to make money, we usually need to spend money, and to spend money we need to have money. In this course, we are going to learn about strategically financing our business with various forms of capital.

Practically every business person knows that there are basically two types of financing: debt and equity; however, beyond that the details become fuzzy. As the CFO, we are the ones that pick and choose the sources of financing for the company. Trade-offs are ongoing constantly as we mix and match each source of financing using the following dimensions of capital.

The CFO also has to consider the needs for capital, there are far more than just financing major investments. Different stakeholders have different objectives for the capital employed within the business. So let's spend a moment to lay the groundwork before we begin discussing the alternatives