Which of the following statements is false:

Group of answer choices

When asked about key factors of debt policy, financial managers commonly mention the tax advantage of debt and the importance of maintaining their credit rating.

Debt finance does not affect the operating risk but it does add financial risk.

Debt financing affects neither the business risk nor the financial risk of the firm.

At moderate debt levels the probability of financial distress is trivial and therefore the tax advantages of debt dominate.