$7.$ Which of the following is$/$are consequences of financial distress?

A$.$ Debt holders want the firm to take fewer risks.

B$.$ Firm value will decline if the firm becomes more financially distressed because the expected costs of financial distress are higher.

C$.$ Debt holders want the equity holders to put up money even if it is invested in zero NPV projects.

D$.$ Equity holders want the firm to pay out as much as possible in dividends.

E$.$ None of the above