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DEF Corp. has assets worth $105 million and debt worth $95 million. Faced with cash flow problems, it makes an exchange offer to its bondholders

DEF Corp. has assets worth $105 million and debt worth $95 million. Faced with cash flow problems, it makes an exchange offer to its bondholders to replace their bonds with equity worth only $80 million. The bondholders would accept this offer if bankruptcy cost exceeds _______.

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