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Level 18 · ◆◆◆ · ~12 min

Capital Structure & Leverage

Capital Structure & Leverage

"How a firm splits its financing between debt and equity — and why borrowing magnifies shareholder returns and shareholder risk in equal measure."

capital structure & the D/E ratiofinancial leveragebusiness risk vs financial riskdoes the mix change firm value?
🚀 You're jumping ahead. This builds on The Cost of Capital & WACC — but play it now and you'll still earn full XP. If it feels steep, those make a gentler on-ramp.

A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.