financial distress costs


Costs associated with companies who cannot meet its financial obligations. Financially distressed companies incur more costs as their cost of borrowing is higher, their production is lesser and they have higher opportunity costs in terms of lost income. Also included are reorganization or liquidation costs.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
financial distress financial feasibility