Why are the losses of debt holders whose claims are not fully repaid not a cost of

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Why are the losses of debt holders whose claims are not fully repaid not a cost of financial distress, whereas the loss of customers who fear the firm will stop honoring warranties is?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:00 AM

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Why are the losses of debt holders whose claims are not fully repaid not a cost of

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The distinction between the treatment of losses for debt holders and loss of customers due to financial distress in the context of costs of financial ...View the full answer

Corporate Finance

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