2 Because financial distress costs are substantial and the shareholders ultimately bear them, firms have an incentive

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2 Because financial distress costs are substantial and the shareholders ultimately bear them, firms have an incentive to reduce costs. Protective covenants and debt consolidation are two common cost reduction techniques.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 06:05 PM

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2 Because financial distress costs are substantial and the shareholders ultimately bear them, firms have an incentive

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Corporate Finance

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