The starting point for your term paper will be the course book, the contents of which will serve as the basis for an
in-depth examination of one of the following questions. You are expected to research and cite from sources
corresponding to your chosen topic.
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.