ProGrowth's CEO recently stated that ProGrowth's value should be higher than StableTech's because the firm has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement? Agree. The higher the leverage, the lower the risk of financial distress and the greater will be the expected costs associated with it. Agree. The higher the leverage, the greater the risk of financial distress. The expected value of the company will reduce because there are positive costs once it reaches distress. Disagree. The higher the leverage, the lower the risk of financial distress. Disagree. The higher the leverage, the greater the risk of financial distress. However, as the costs associated with it are zero, there's no change in the expected value