Explain how a firm that never files for bankruptcy can still suffer from indirect bankruptcy costs. Topic: Leverage and Capital StructureQuestion: Explain how a firm that never files for bankruptcy can still suffer from indirect bankruptcy costs. (3 to 10 complete sentences)

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Asked Oct 11, 2019
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Explain how a firm that never files for bankruptcy can still suffer from indirect bankruptcy costs.

 

Topic: Leverage and Capital Structure

Question: Explain how a firm that never files for bankruptcy can still suffer from indirect bankruptcy costs. (3 to 10 complete sentences)

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Expert Answer

Step 1

Indirect Bankruptcy Costs:

Those costs which occur on a firm and pressurized the firm to file the bankruptcy. It occurs from the departure of employe...

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