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Foundation

Practice Drills: Comparing Equity vs Debt Financing Scenarios

A hands-on drill course for non-finance team members, corporate treasury staff, HR and L&D teams, and startup founders. Working on one sample Indian manufacturer that needs INR 40 crore for a new plant, you will calculate the real post-tax cost of a bank loan and of fresh equity, compare what each option does to EPS, return on equity and interest coverage, find the break-even profit level between the two plans, measure promoter dilution, and stress test both plans in a bad year. You then run the same drills on a bootstrapped startup weighing venture debt against a seed round and on a listed mid-cap choosing between a QIP, a rights issue and NCDs, and finish by writing a one-page financing recommendation for a board.

Equity vs DebtCost of CapitalEPS and ROE ImpactInterest CoverageDilution

MODULES

6

DURATION

~3 hrs

TRACK

Corporate Finance

What You'll Master

How to calculate the true post-tax cost of a bank loan or NCD, including processing fees

How to estimate the cost of equity with a simple CAPM build using Indian inputs

How to compare EPS and return on equity under an all-equity plan and a debt-funded plan

How to find the EBIT break-even point where both financing plans give the same EPS

How to check interest coverage and debt service coverage the way an Indian bank credit team does

How to measure promoter dilution and stress test both plans in a bad year before you commit

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Drill

2 Lessons

The Drill Brief: One Company, INR 40 Crore Needed, Two Ways to Raise It10 min read

Drill: Reading the Starting Balance Sheet and Profit and Loss Before You Choose13 min read

Chapter 2: Drill 1, What Each Option Really Costs

3 Lessons

Drill: Calculating the True Post-Tax Cost of a Bank Loan14 min read

Drill: Estimating What Equity Costs When Nobody Sends You an Interest Bill15 min read

Drill: Putting Both Costs Side by Side With a Simple WACC14 min read

Chapter 3: Drill 2, What Each Option Does to the Numbers

3 Lessons

Drill: Comparing EPS and Return on Equity Under Equity vs Debt Funding15 min read

Drill: Finding the EBIT Break-Even Point Between the Two Plans14 min read

Drill: Checking Interest Coverage and Debt Service Before a Bank Says No14 min read

Chapter 4: Drill 3, Control, Dilution and Risk

2 Lessons

Drill: Measuring Promoter Dilution and What Founders Give Up13 min read

Drill: Stress Testing Both Plans in a Bad Year15 min read

Chapter 5: Drill 4, Two More Real World Scenarios

2 Lessons

Drill: A Bootstrapped Startup Choosing Between Venture Debt and a Seed Round15 min read

Drill: A Listed Mid-Cap Choosing Between a QIP, a Rights Issue and NCDs16 min read

Chapter 6: Capstone

1 Lessons

Capstone Drill: Writing a One-Page Financing Recommendation for the Board17 min read