Chapter 17Capital Structure: Limits to the Use of Debt Multiple Choice Questions1.The explicit costs, such as the legal expenses, associated with corporate default are classified as _ costs.A.flotationB.beta conversionC.direct bankruptcyD.indirect bankruptcyE.unlevered2.The costs of avoiding a bankruptcy filing by a financially distressed firm are classified as _ costs.A.flotationB.direct bankruptcyC.indirect bankruptcyD.financial solvencyE.capita
