Assume a fellow student made these statements during a class discussion: "Bankruptcy costs only affect a firm 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.

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The Answer of Assume a fellow student made these statements during a class discussion: "Bankruptcy costs only affect a firm 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