financial decision：

1. capital asset structure mixture-- optimum capital mix

2. appropriate of range of source of finance: availablility, equity, hybrids, lease finance, venture capital, business angel, private equity, asset securitisation, sale, Islamic finance

3. Islamic financing, rationale, benefits...

4. assess the impact of financing the organisation with the respect to:

• Modigliani and Miller proposition, before and after tax
• static trade-off theory
• pecking order peopositions
• agency effects

5. assess and advise on the costs and benefits of alternative source of finance available within the international equity and bond markets

key skills: communication, scepticism, comercial acumen, and analysis and evaluation

practice factors need to consider in financial resouces:

1. cost of capital shares (equity)  low risk, most expensive for share holders expect high return

2. debt:  liquility risk barriers to obtain, interst cost 

3. how long the finacial needed

security: & debt  ratio gearing 

1. what kind security or debt should the company to use to fiance its projects

2. different level of return

3. liquilirity

4. interest will reduce the dividend the company may pay and reduce the tax payment

5. level of equity will change the balance sheet

MM thory gearing1958 model:

assumptions:

1. there is no transaction cost （perfect capital market)

2. there is no different on Kd 

3. rational and riskless

4. there is no tax 

5. 0 gearing, the wacc is  no impact on  gearing

1963 model with tax on business cash flows