All of the following are examples of the costs of financial distress EXCEPT:

Question

Quizplus · Accepted Answer

The costs of financial distress typically include operational issues such as losing valuable employees, suppliers being wary of extending credit, and customers hesitating to purchase from the firm. However, bondholders deciding to exercise their call option is not a cost of financial distress; it's a decision related to the terms of a bond agreement and not directly a result of financial distress.

All of the Following Are Examples of the Costs of Financial