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    Corporate Finance Study Set 1
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    Exam 17: Capital Structure: Limits to the Use of Debt
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    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 68

Question 68

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) indirect bankruptcy
E) financial distress

Correct Answer:

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