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  3. Study Set
    Corporate Finance Core Study Set 1
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    Exam 15: Capital Structure: Limits to the Use of Debt
  5. Question
    The Explicit and Implicit Costs Associated with Corporate Default Are
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The Explicit and Implicit Costs Associated with Corporate Default Are

Question 53

Question 53

Multiple Choice

The explicit and implicit costs associated with corporate default are referred to as the ________ costs of a firm.


A) flotation
B) default beta
C) direct bankruptcy
D) financial distress
E) indirect bankruptcy

Correct Answer:

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