Which of the Following Statements Is False

Which of the following statements is false?

A) Firms with high R&D costs and future growth opportunities typically maintain high debt levels.
B) The tradeoff theory explains how firms should choose their capital structures to maximize value to current shareholders.
C) With tangible assets, the financial distress costs of leverage are likely to be low, as the assets can be liquidated for close to their full value.
D) Proponents of the management entrenchment theory of capital structure believe that managers choose a capital structure to avoid the discipline of debt and maintain their own job security.