Which of the following would be categorized as a financial distress cost? $q,$ higher interest rates charged by lenders

lower bond prices for bonds of the same risk as before the distress

attorney fees for bankruptcy

all of these

$q,$

QUESTION $31$

Multiple Discriminant Analysis $($MDA$)$ is the basis for determining

Altman's $z-$score

the BIH theory

the clientele effect

the irrelevance theory

$q,$

QUESTION $32$

In the trade$-$off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply an interior optimum $($firm value maximizing$)$ debt ratio

that investors are irrational, since they require lower returns the hgher the risk

that a firm would use little to no debt

that a firm would borrow as much as possible