The correct order of capital stack from the most to least secured is* Equity > Subordinated debt > Senior debt Suborindated debt > Senior debt > Equity Senior debt > Subordinated debt > Equity Senior debt > Equity > Subordinated debt

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter9: Projecting Financial Statements
Section: Chapter Questions
Problem 3bM
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The correct order of capital stack from the most to least secured is*

  • Equity > Subordinated debt > Senior debt
  • Suborindated debt > Senior debt > Equity
  • Senior debt > Subordinated debt > Equity
  • Senior debt > Equity > Subordinated debt 
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