Which one of the following terms is inclusive of both direct and indirect bankruptcy costs?
A)Financial distress costs
B)Capital structure costs
C)Financial leverage
D)Homemade leverage
E)Cost of capital

Question

Quizplus · Accepted Answer

Financial distress costs include both direct costs, such as legal and administrative expenses, and indirect costs, such as lost sales and reduced operational efficiency, associated with bankruptcy.

Which One of the Following Terms Is Inclusive of Both