Video: Introduction to Capital Structure and Management

In this lesson, Nick Palazzolo, CPA, delves into the intriguing world of capital structure and management, illuminating the significance of various financing methods such as debt, equity, and preferred stock. He paints a vivid scenario using a hypothetical startup version of Nike, illustrating how a company raises funds and makes investments to support operational activities. Nick demystifies the concept of an optimal cost of capital, breaking down the intricacies of calculating the weighted average cost of capital (WACC), and he touches upon the consequences of different capital structuring choices on a company's future. Dive into the essence of raising capital with Nick, as he lays the foundation for understanding how effective capital management impacts a company's operations and strategic growth.