This module introduces the foundational concepts required to determine a firm's financing mix. Learners explore business risk, understand how operational decisions influence financial outcomes, and analyze break-even concepts that help firms identify the minimum sales level required to cover costs. By examining the relationship between selling price, costs, and profitability, learners build the analytical foundation necessary for capital structure decision-making.

This module explores the role of leverage in financial management and capital structure planning. Learners examine operating leverage, financial leverage, and combined leverage to understand how sales fluctuations affect profitability and shareholder returns. The module also introduces agency cost conflicts and highlights how managerial decisions influence the balance between risk and return in corporate financing strategies.

This module introduces the key tools used in capital structure decision-making and financing mix analysis. Learners examine debt and equity financing instruments, analyze EBIT-based decision tools, and evaluate how financial ratios and industry benchmarks guide strategic financing decisions. The module emphasizes analytical approaches used by financial managers to identify optimal financing structures.

This module focuses on advanced financial analysis techniques used in capital structure decision-making. Learners explore EBIT–EPS analysis and numerical methods used to compare financing alternatives. Through the concept of the indifference point, learners determine the EBIT level at which different financing plans produce equal earnings per share, enabling informed financial strategy decisions.