Select the TWO examples of direct bankruptcy costs: Group of answer choices incentive to take on risky projects distribution of funds to stockholders prior to bankruptcy administrative costs of liquidation or reorganization lawyer and accountant fees

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter23: Corporate Restructuring
Section: Chapter Questions
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  1. Select the TWO examples of direct bankruptcy costs:

Group of answer choices

incentive to take on risky projects

distribution of funds to stockholders prior to bankruptcy

administrative costs of liquidation or reorganization

lawyer and accountant fees

 

  1. True/False. The optimal amount of debt produces the highest weighted average cost of capital.

Group of answer choices

True

False

 

  1. In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following?

 

Group of answer choices

horizontal acquisition

conglomerate acquisition

vertical acquisition

merger

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