The argument stating that the expected direct and indirect costs of bankruptcy will offset any of the other benefits that are received from leverage so that the optimal amount of leverage is less than 100 percent of debt financing. This theory states that the costs of bankruptcy will offset or even exceed the benefits that the company receives from a great deal of leverage.
Related information about bankruptcy cost view:
- Bankruptcy cost view
Similar financial terms. Prepackaged bankruptcy. A bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along ...
- What is bankruptcy cost view? definition and meaning
Definition of bankruptcy cost view: The argument stating that the expected direct and indirect costs of bankruptcy will offset any of the other benefits that are ...
- Bankruptcy Cost View - Financial Dictionary - The Free Dictionary
The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% ...
- Bankruptcy cost view Definition - NASDAQ.com
Bankruptcy cost view: read the definition of Bankruptcy cost view and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Bankruptcy Cost View Definition
Bankruptcy Cost View Concept / belief that predictable costs of bankruptcy, both indirect and direct set off the benefits of leveraging such that debt.
- Agency cost view - Financial Definition
Bankruptcy cost view. The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of ...
- Bankruptcy risk - Financial Definition
Bankruptcy cost view. The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of ...
- * Insolvency - (Business): Definition
Bankruptcy and Insolvency Act (Canada) Bankruptcy and Insolvency Advisory Committee Bankruptcy Bar Association Bankruptcy Code Bankruptcy cost view ...