Capital Stack

Formula / Structure: Hierarchy: Senior Debt (Lowest Risk/Return) → Mezzanine / Subordinated Debt → Preferred Equity → Common Equity (Highest Risk/Return)

Plain Language

The hierarchy of different sources of capital funding a business or project.

Literal Meaning

Ground Reality

Decision View

What It Is Not

[object Object],[object Object]

Practical Leadership Questions

  • [object Object]
  • [object Object]