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Ch 15: Financial Leverage & Capital Structure

About This Chapter

Learn the influencing factors that govern decisions about the borrowing of needed funds for businesses. This chapter was created by experienced instructors who are here to answer your questions.

Financial Leverage & Capital Structure - Chapter Summary and Learning Objectives

This chapter on financial leverage and capital structure will show you the ways in which businesses balance their debt and equity to optimize for their individual company goals. Our instructors take you through capital structure theories and the costs of borrowing money. Each lesson comes with a quiz to ensure you are retaining the information presented. The following topics are covered:

  • Capital structure
  • Cost of capital
  • Financial leverage
  • Bankruptcy costs

Video Objective
Capital Structure & the Cost of Capital Explore the meaning of these crucial terms.
Financial Leverage: Corporate Borrowing & Homemade Leverage Study different ways companies borrow money.
Direct & Indirect Bankruptcy Costs Examine the effect of bankruptcy costs on a firm's capital structure.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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