FIN 571 Final Exam Latest Version 2018

Question 1. The costs of avoiding a bankruptcy filing by a financially distressed firm are classified as _____ costs A. flotation B. direct bankruptcy C. indirect bankruptcy D. financial solvency E. capital structure 2. Which one of the following is an example of a nondiversifiable risk? A. a well respected president of a firm suddenly resigns B. a well respected chairman of the Federal Reserve suddenly resigns C. a key employee of a firm suddenly resigns and accepts employment with a key compet...