9. Bankruptcy costs (S17-2) On February 28, 2025, when PDQ Computers announced bankruptcy, its share price fell

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9. Bankruptcy costs (S17-2) On February 28, 2025, when PDQ Computers announced bankruptcy, its share price fell from $3.00 to $.50 per share. There were 10 million shares outstanding.

Does that imply bankruptcy costs of 10 × (3.00 – 0.50) = $25 million? Explain.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:02 AM

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9. Bankruptcy costs (S17-2) On February 28, 2025, when PDQ Computers announced bankruptcy, its share price fell

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Principles Of Corporate Finance

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