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Bankruptcy
is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.
Weighted Average Cost of Capital
A calculation of a firm's cost of capital, wherein each category of capital is proportionally weighted.
Interest Tax Shield
A deduction that companies can take from their taxable income for the interest payments they have made on their debt, effectively reducing their taxable income.
Bankruptcy Cost
The expenses and financial losses associated with going through bankruptcy, including legal fees, lost business, and detrimental effects on creditworthiness.
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