On February 29, 2013, when PDQ Computers announced bankruptcy, its share price fell from $3.00 to $

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On February 29, 2013, when PDQ Computers announced bankruptcy, its share price fell from $3.00 to $ .50 per share.
There were 10 million shares outstanding. Does that imply bankruptcy costs of 10 x (3.00 - .50) 5 = $25 million? Explain.

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Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Posted Date: Jun 19, 2019 02:02 AM

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On February 29, 2013, when PDQ Computers announced bankruptcy, its share price fell from $3.00 to $

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Principles of Corporate Finance

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