Cost of Financial Distress and Tangible Assets

Onda · February 25, 2021, 4:14am

the cost of financial distress will be lower for a more tangible asset-based company relative to companies with mostly intangible assets. Why?

Isnt the cost of financial distress related to the debt?

fino_abama · February 25, 2021, 5:08am

Tangible assets are readily marketable and can be sold off to reduce cost of financial distress.

Onda · February 26, 2021, 2:54am

gotcha- thank you