Which of the following is false about financial distress costs?

Group of answer choices

A)Financial distress costs include the cost of debt restructuring.

B)The present value of financial distress costs decreases as the probability of bankruptcy increases.

C)These costs tend to decrease the value of a levered firm.

D)Financial distress costs have more to do with static tradeoff theory, not the pecking order theory, of capital structure

E)If anticipated, bondholders will attempt to pass these costs onto shareholders when they purchase the debt.