Question

firms whose assets are relatively low bankrupt cost, hence they tend to use relatively more debt.

true or false

firms whose asset are relative liquid tend to have relatively low bankruptcy costs, hence they temd to use relatively more debt

Answer 1

firms whose assets are relatively low bankrupt cost, hence they tend to use relatively more debt.- false

firms whose asset are relative liquid tend to have relatively low bankruptcy costs, hence they tend to use relatively more debt-true

that the firms restructuring out-of-court is more solvent and liquid, and have firms restructuring out-of-court tend to have relatively strong operating cash .a relatively low proportion of intangible assets, and thus less costly bankruptcy proceedings. They also find that 59% of firms whose banks agree to a debt restructuring.