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2. Capital Structure and M&M with Taxes and Bankruptcy a) What is the difference between direct and indirect bankruptcy costs? b) What is the difference

2. Capital Structure and M&M with Taxes and Bankruptcy
1. a) What is the difference between direct and indirect bankruptcy costs?
2. b) What is the difference between liquidation and reorganization?
3. c) What is the difference between marketed claims and non-marketed claims?
4. d) Under the pecking order theory, what is the order in which firms will obtain financing?

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