Which of the following statements is false? A Creditors often place restrictions on the actions that the firm can take. Such reactions arc referred to as debt covenants. B. Covenants arc often designed to prevent management from exploiting debt holders, so they may help to reduce agency costs. C. Covenants may limit the firm's ability to pay large dividends or the types of investments that the firm can make. D. Agency costs are smallest for long - term debt