Capital Structuring
Competency Title:
Capital Structuring
Competency Type:
Functional
Competency Description
This competency refers to the ability to determine the optimal capital structure for the business. The scope includes reviewing the nature of business and its cash flow, identifying the cost of capital, and recommending corporate finance strategies, i.e. financing (loans/borrowing) and/or fundraising (debts/equity).
Level 1 - Awareness
Level 1
• Identify key determinants in planning for capital structure.
• Identify factors contributing to the value of a company.
• Identify the capital structure approaches and theories.
Level 2 - Knowledge
Level 2
• Illustrate the influence of key determinants on capital structure.
• Recognise the relationship between capital structure and value of the firm.
• Differentiate the capital structure approaches and theories.
Level 3 - Skill
Level 3
• Ascertain the factors that influence the capital structure of a company.
• Identify the shareholders' expectations and capital requirements of the client.
• Develop proposals for capital structure that meet the client's requirements and expectation.
Level 4 - Mastery
Level 4
• Determine the impact of internal and external factors on the capital structure of a company.
• Construct a capital structure that balances shareholders' expectation and client's capital requirements.
• Plan and execute the agreed capital structure in compliance with related laws and regulations.
Level 5 - Expert
Level 5
• Formulate procedure to measure the impact of factors on the capital structure of a client.
• Decide on the optimal capital structure that balances shareholders' expectation and company's capital requirements.
• Formulate strategy for organising capital restructuring activities in compliance with related laws and regulations.