10. Which of the following statements is FALSE? A) If bankruptcy is costly, these costs might offset the tax advantages of debt financing. B) Bankruptcy is a long and complicated process that imposes both direct and indirect costs on the firm and its investors. C) Bankruptcy is rarely simple and straightforward-equity holders don't just "hand the keys" to debt holders the moment the firm defaults on a debt payment. D) None of the above 11. Which of the following statements is FALSE? A) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. B) If the cost of capital estimate is more than the IRR, the NPV will be positive. C) To decide whether to invest using the NPV rule, we need to know the cost of capital. D) None of the above 12. Which of the following statements is FALSE? A) The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea. B) An IRR will always cxist for an investment opportunity. C) A NPV will always exist for an investment opportunity. D) None of the above