Which of the following is the type of financial distress in which the return on a firm's assets is less than the firm's cost of capital?

Name: Which of the following is the type of financial distress in which the return on a firm's assets is less than the firm's cost of capital?
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Question

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Economic failure occurs when a firm's return on assets is less than its cost of capital, indicating that the firm is not generating enough returns to cover its cost of financing.

Which of the Following Is the Type of Financial Distress