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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.