Which of the following statements is false?
A) Different firms are subject to different levels of risk.
B) Debt is often the least costly form of financing for a firm.
C) Firms should probably use some debt in their capital structure.
D) As debt increases, the risk associated with bankruptcy and agency costs is reduced.
E) All of the above statements are true.

Question

Quizplus · Accepted Answer

As debt increases, agency and financial distress costs increase.

Which of the Following Statements Is False