Regarding bankruptcy costs

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Select the incorrect statement below regarding bankruptcy costs. A. The explicit costs associated with corporate default, such as legal expenses, are the direct bankruptcy costs. B. B) The implicit costs associated with corporate default, such as lost sales, are the indirect bankruptcy costs. C. The explicit and implicit costs associated with corporate default are called the financial distress costs. D. The costs of uncertainty associated with corporate default are flotation costs.

Reference no: EM131088299

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