Which of the following statements is FALSE? Whether paid by the firm or its creditors, the indirect costs of bankruptcy increase the value of the assets that the firm's investors will ultimately receive. With perfect capital markets, the risk of bankruptcy is not a disadvantage of debt - bankruptcy simply shifts the ownership of the firm from equity holders to debt holders without changing the total value available to all investors. The assumption of perfect capital markets ignores the fact that bankruptcy is a long and complicated process that imposes both direct and indirect costs on the firm and its investors. Bankruptcy is rarely simple and straightforward - shareholders do not just "hand the keys" to debt holders the moment the firm defaults on a debt payment. None of the above is false