….Companies will be exposed to foreign exchange rate risks.

……Traditional Corporate Finance theory is that, as debt is a cheaper form of raising capital than equity, a company should use leverage to enhance equity returns.

Having some debt is understandable. Companies will have foreign exchange exposures . However at a time of uncertainty and rapid change in the business environment:

1. how much debt is appropriate, particularly in  leveraged acquisitions as well as both high growth companies and companies facing rapid change?

2. How will foreign exchange, interest rate and commodity prices impact a company’s financial performance at a time when US dollar interest rates have been rising and we are seeing major currency movements?

To gain some insights into what should be considered while evaluating the capital structure  and financial risks faced by large corporates, please take a look at the video in this post and enrol in the video course on “Essential Elements of Financial and Qualitative Risk Assessment at a Time of Rapid and Disruptive Change”. Here is a link to a free download introducing the video course https://m-training.thinkific.com/collections

If you would also like a brief summary of the video course content please contact me.