Corporate Finance Explained | Understanding Capital Structure – Balancing Debt and Equity

Video Description

How do companies decide between debt and equity financing? Every corporate finance professional needs to understand capital structure—the mix of debt and equity that funds a company's growth, operations, and strategic moves. In this episode of Corporate Finance Explained, we break down the key concepts, trade-offs, and real-world examples of capital structure decisions. What You'll Learn: The fundamentals of capital structure – How companies manage debt and equity financing. Debt vs. Equity: Pros and Cons – The benefits and risks of each financing method. How real-world companies optimize capital structure: - Apple’s debt strategy – Why a cash-rich company still issues corporate bonds. - Amazon’s $13.7B Whole Foods acquisition – Using debt instead of equity to fund growth. - Tesla’s evolving capital structure – From equity-funded growth to leveraging debt. - Airbnb’s pandemic survival – Choosing debt financing to avoid diluting investors. Theories behind capital structure – Pecking Order Theory, Modigliani-Miller Theorem, and finding the optimal balance. Who should listen? Corporate finance professionals, FP&A analysts, CFOs, and investment professionals who want to sharpen their understanding of capital structure and financing decisions. 📚 Learn more with CFI’s Corporate Finance Courses: https://cfi.to/uiaa7 🎧 Subscribe and listen on your favorite podcast platform! #CorporateFinanceExplained #CapitalStructure #CorporateFinance #DebtVsEquity #InvestmentBanking #BusinessFinance #Apple #Amazon #Tesla #Airbnb #CFI