1. The following is not an example of a direct cost of bankruptcy:

a. Accountant Fees

b. Poor terms from suppliers

c. Court Fees d. Lawyer Fees

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2. The following theory of capital structure predicts that firms with high profitability issue less debt:

a. Debt burden

b. Pecking order

c. Distress Cost

d. Static trade-off

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3. The following is an example of an industry with a low amount of debt:

a. Air Transport

b. Hotels and motels

c. Building Construction

d. Biological products