Which of the Following Statements Is FALSE

Which of the following statements is FALSE?

A) The optimal level of debt D* balances the costs and benefits of leverage.
B) As the debt level increases,the firm benefits from the interest tax shield (which has present value τ*D) .
C) If the debt level is too large,firm value is reduced due to the loss of tax benefits (when interest exceeds EBIT) ,financial distress costs,and the agency costs of leverage.
D) As the debt level increases,the firm faces decreased incentives for management,which increase wasteful investment and perks.