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    Corporate Finance Study Set 11
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    Exam 16: Capital Structure: Limits to the Use of Debt
  5. Question
    The Explicit Costs, Such as the Legal Expenses, Associated with Corporate
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The Explicit Costs, Such as the Legal Expenses, Associated with Corporate

Question 57

Question 57

Multiple Choice

The explicit costs, such as the legal expenses, associated with corporate default are classified as _____ costs.


A) flotation
B) beta conversion
C) direct bankruptcy
D) indirect bankruptcy
E) unlevered

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