Assume a fellow student made these statements during a class discussion:
"Bankruptcy costs affect a firm only if the firm files a bankruptcy petition with the court.Therefore,the static theory of capital structure only applies to bankrupt firms." Write a response to your fellow student that either supports or contradicts that student's statements.

Question

Assume a fellow student made these statements during a class discussion:
 "Bankruptcy costs affect a firm only if the firm files a bankruptcy petition with the court.Therefore,the static theory of capital structure only applies to bankrupt firms." Write a response to your fellow student that either supports or contradicts that student's statements.

Quizplus · Accepted Answer

The Answer of Assume a fellow student made these statements during a class discussion:
 "Bankruptcy costs affect a firm only if the firm files a bankruptcy petition with the court.Therefore,the static theory of capital structure only applies to bankrupt firms." Write a response to your fellow student that either supports or contradicts that student's statements.

Assume a Fellow Student Made These Statements During a Class