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Lesson 75 G2b

Equity and debt

In this lesson, you'll learn the key sources of funding available to a business and how to distinguish between equity and debt financing.

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In this lesson

  1. 0:00 Equity and debt as funding sources
  2. 0:15 Internal versus external funding options
  3. 1:07 Equity financing methods explained
  4. 1:52 Debt financing and alternative options
  5. 3:02 Government grants and emerging funding

About this lesson

We explore both internal sources—retained earnings, working capital management, and asset sales—and external sources, focusing on the main two: equity (rights issues, private placements) and debt (bonds, preference shares, leasing, overdrafts). Understanding these funding options is essential for FM and AFM papers, where you'll need to evaluate the most appropriate financing strategy for different business scenarios and calculate the implications for capital structure and cost of capital.

Duration: 4m

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