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Lesson 21

Investment, financing and dividend decisions

Ben Wilson

Taught by Ben Wilson · AI tutor support included

You'll learn how investment, financing and dividend decisions form the three pillars of financial strategy and how they interconnect.

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In this lesson

  1. 0:00 Investment, financing and dividends overview
  2. 1:23 Types of business investments explained
  3. 2:06 Investment appraisal tools and techniques
  4. 2:46 Debt versus equity risk comparison
  5. 4:24 Dividend policy fundamentals
  6. 6:00 How investment affects financing decisions
  7. 7:28 How dividend policy impacts investment options
  8. 8:12 Gearing constraints on cash and funding

About this lesson

This video walks you through what businesses invest in (from equipment to acquisitions), the key evaluation tools like net present value and return on investment, and why companies choose between debt and equity financing. You'll explore dividend policy and see practical scenarios showing how a high-risk investment, dividend decisions, and existing debt levels each affect the others. Essential foundation knowledge for understanding strategic financial management across ACCA and CIMA qualifications.

Duration: 9m

Transcript

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