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Kyle has made the following statement about bankruptcy. Which one is correct? A. The administrative cost of a bankruptcy is classified as indirect bankruptcy cost.

Kyle has made the following statement about bankruptcy. Which one is correct?

A. The administrative cost of a bankruptcy is classified as indirect bankruptcy cost.

B. Bankruptcy costs may increase the tax-related gains from leverage.

C. A company would consider bankrupt when it becomes delinquent on a loan payment

D. The higher cost of capital the company pays in order to avoid extreme debt is considered a direct cost of bankruptcy.

E. None of the all.

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