Corporate Finance #13 Investment Banking & Long-Term Debt

Explore the world of capital markets and investment banking with this comprehensive course! You'll gain a solid understanding of how businesses raise capital and investors find profitable opportunities. We'll delve into long-term debt and lease financing, equipping you with practical skills for navigating these crucial financial areas.

Key Topics Covered:

• Understanding Security Markets: Learn the difference between money markets and capital markets. Discover how money markets handle short-term securities (maturities of one year or less), while capital markets focus on long-term investments (maturities exceeding one year). We'll concentrate on the intricacies of capital markets.
• The Role of Investment Bankers: Discover how investment bankers act as crucial intermediaries, connecting companies seeking funding with potential investors. Understand the responsibilities of investment bankers in designing, packaging, and selling securities to the public – a role often involving significant risk.
• Commercial Banks vs. Investment Banks: We'll clearly differentiate between commercial banks, which primarily serve individuals and small businesses with loans and mortgages, and investment banks, which focus on larger corporations and high-growth startups. Learn about the distinct risk profiles of each.
• Debt vs. Equity Financing: Explore the various options for funding business growth, with a detailed comparison of debt financing (like corporate bonds) and equity financing. We'll analyze the advantages and disadvantages for both the corporation and the investor.
• Long-Term Debt & Lease Financing: Gain insights into how companies utilize long-term debt to fuel expansion and the mechanics of lease financing as an alternative to purchasing assets.

Learning Experience:

This course incorporates numerous example problems, presented through both engaging presentations and practical Excel worksheet exercises. You'll receive a downloadable Excel workbook with at least two tabs: one containing the answers and a preformatted worksheet designed for step-by-step completion. Instructional videos will guide you through each problem. Develop your financial modeling skills and gain a practical understanding of how capital markets function.