Which of the following would not be considered a cost of financial distress?

Question

Quizplus · Accepted Answer

Lack of interest tax shields is not considered a cost of financial distress but rather a consequence of having less debt in a company's capital structure. Costs of financial distress typically include bankruptcy costs, excessive risk-taking by shareholders, and loss of customers or suppliers, which are direct and indirect costs associated with a company's financial troubles.

Which of the Following Would Not Be Considered a Cost