Value of a levered firm value of an equivalent

Value of a levered firm = value of an equivalent unlevered firm + PV(tax
shield) - PV(cost of financial distress).
Type: Difficult
71
.
Briefly discuss bankruptcy costs.
Type: Difficult
72. Discuss some examples of conflicts of interest that may arise between
bondholders and stockholders when a firm is in financial distress.
Type: Medium
73. Briefly explain the trade-off theory of capital structure.
Type: Medium

74. Explain the pecking order theory of capital structure.
Type: Medium
75. Explain the impact of government loan guarantees on corporate financing.
Type: Medium