Which of the following statements about a firms debt and equity is NOT correct?

Select one:

a. Debt assets such as bonds and loans are lower risk investments than shares

b. Bonds and loans usually have higher expected returns than shares because they have first claim on the firms assets.

c. Firms' past realised debt returns are usually lower than their past realised share returns.

d. In the event of bankruptcy, debt holders are paid in full before equity holders are paid anything.

e. If a firm makes very high profits and cash flows, the debt holders are still only paid the interest and principal payments that theyre promised and no more. For this reason, returns on debt have a maximum.