Which one of the following is an example of a direct bankruptcy cost?

a. A firm forgoes a positive net present value project to avoid spending the cash required by the projects initial required cash outflow.

b. A firm reduces its dividend temporarily and uses the funds to reduce the debt-equity ratio.

c. Senior financial managers leave a firm because they understand the current financial condition of the firm.

d. A firm engages an attorney to draft a prepack.

e. Major customers believe that a firm is suffering financial distress and move their

business to a competitor.