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What factors often lead to financial distress for a firm? What are the costs of financial distress? How does the affect the optimal capital structure

What factors often lead to financial distress for a firm? What are the costs of financial distress? How does the affect the optimal capital structure of a firm? What factors determine if a company in financial distress ends in bankruptcy (liquidation) or restructuring? Why is Economic Value Added (EVA) a good indicator of managerial performance? What are some of the shortcomings of EVA?

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