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Question: 1 what is the cost of financial distressa bankruptcy filing...

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1. What is the cost of financial distress?

a. Bankruptcy filing cost.

b. Forgone investment opportunities.

c. Both a and b.

d. No answer is correct.

2. Based on Pecking Order theory, which is the most prior sources of funding?

a. Retained Earnings.

b. Debt.

c. Shares issue.

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