CU Indirect Costs of Bankruptcy & Litigation Related Losses Discussion

Question Description

I’m working on a writing discussion question and need an explanation to help me learn.

1. What are the direct and indirect costs of bankruptcy? Briefly explain each. Additionally, some firms have filed for bankruptcy because of actual or likely litigation-related losses. Is this proper use of the bankruptcy process?

2. Explain the use of dividends versus repurchases? Specifically, when might a company use a dividend and when they might use a stock repurchase? Consider recent examples in the financial news.