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Financial Distress Costs
Expenses that a company may incur when it is facing financial problems, which can include legal fees, restructuring costs, and loss of reputation.
Static Theory of Capital Structure
A theory that proposes there is an optimal capital structure for a company where the cost of capital is minimized, and the value of the firm is maximized.
Tax Benefit
A reduction in tax liability achieved through claiming allowable deductions such as expenses, exemptions, and credits.
Financial Distress
A situation where a company is unable to meet its financial obligations, which can lead to bankruptcy if not addressed.
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