Financial distress occurs when promises to creditors are not honored or honored with great difficulty.
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Q48: According to Rajan and Zingales, debt ratios
Q49: Financial distress always results in bankruptcy.
Q50: Financial slack includes:
I.cash;
II.marketable securities;
III.readily salable real assets;
IV.ready
Q51: The right to default is valuable to
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Q54: The trade-off theory of capital structure predicts
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Q56: The present value of the interest tax
Q57: Under the trade-off theory, how will a
Q58: When the costs of financial distress are
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