Which of the following statements is false?

	A.	The systematic risk of the firm's equity has two parts: business risk and financial risk.
	B.	The interest tax shield is risk-free.
	C.	Financial risk is derived from the event that bondholders will assume control of the firm in the event of default.
	D.	Most firms in the United States maintain relatively low debt/equity ratios.
	E.	Financial distress costs decrease the attractiveness of debt financing, all else the same.