4.Which of the following statements is incorrect?
(A) When securities are fairly priced, the original shareholders of a firm pay the future value of the costs associatedwith bankruptcy and financial distress.
(B)The Modigliani and Miller theorem does not hold in a perfect capital market with the risk of bankruptcy.
(C) With tangible assets, the financial distress costs of leverage are likely to be low.
(D) Although direct costs of bankruptcy are difficult to measure accurately, they are typically much smaller than theindirect costs of bankruptcy.