Equity vs. Debt Financing: Define and explain the terms equity and debt financing. Also compare the two types of
capital and point out their main characteristics. Explain what type of financing is more important for firms and
how they affect a firm´s capital structure. Also explain what financial leverage is and why it is relevant in this
context.
When conceptualizing and writing the written assignment, the evaluation criteria and explanations given in the
writing guidelines should be considered.
