The Problem of Short-term Credit, 71
Interest Expense Inequalities, 73
Risk, Return, and the Significance of Short-term Credit, 74
The Corporate Cost of Debt, 76
The Nominal Cost of Debt and the Cost of Bankruptcy, 78 The Cost of Bankruptcy, 80
The Probability of Default, 80
Commercial Ratings Systems, 82
Types of Bankruptcy, 84
The Amount of Loss, 85
The Role of Debt in Capital Structure Optimization, 90
The Optimal Amount of Debt, 92
Long-term Debt and the Amount of Loss, 93
Graphic Depiction, 93