Question

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)*

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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