Bankruptcy includes a range of court procedures in the US that may result in the firm being liquidated or financially reorganized to continue...
The argument that expected indirect and direct bankruptcy costs offset the other
benefits from leverage so that the optimal amount of leverage is...
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
the stockholders to the bondholders.