- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 3. Modigliani-Miller Capital Structure Propositions
CFA Practice Question
Which company has the highest costs associated with financial distress? A. Southwestern Airlines
B. British Steel - The biggest steel manufacturer in the UK
C. AppSoft - A quickly-growing software company
Correct Answer: C
Companies that have assets ready for secondary markets have lower costs associated with financial distress.
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