Corporate Finance: Leverage & Financing Decisions

Learn how companies choose the right mix of debt and equity to maximize profitability and manage risk. Build practical skills in leverage analysis and EBIT–EPS decision-making used in corporate finance. This course provides a structured approach to analyzing and optimizing corporate financing strategies. You will begin by understanding business risk and break-even analysis, learning how operational decisions impact financial performance and profitability. You will then explore operating leverage, financial leverage, and combined leverage to understand how changes in sales affect earnings and shareholder returns. The course also covers key tools used in capital structure decision-making, helping you evaluate financing options using real-world financial logic. A major focus of the course is EBIT–EPS analysis, where you will compare different financing alternatives and determine the most effective strategy. You will also learn how to calculate the indifference point to identify the EBIT level at which financing options yield the same earnings per share. By the end of the course, you will be able to confidently analyze financing decisions, balance risk and return, and optimize capital structure strategies in real business scenarios.