Indirect costs of bankruptcy are born principally by:
A)stockholders.
B)bondholders.
C)managers.
D)the firm's suppliers.
E)the federal government.

Name: Indirect costs of bankruptcy are born principally by: A)stockholders. B)bondholders. C)managers. D)the firm's suppliers. E)the federal government.
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Question

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Stockholders primarily bear the indirect costs of bankruptcy as the value of their equity is diminished due to the firm's financial distress and potential loss of future earnings.

Indirect Costs of Bankruptcy Are Born Principally By