Which of the following statements isleastaccurate?

a.Bondholders are likely to raise interest rate, if they feel that they know little about the firm compared to corporate insiders.

b.Agency cost makes debt financing more expensive.

c.There are occasions when shareholders, facing bankruptcy risk, have incentive to under-invest, even though the investment opportunity has a positive NPV.

d.If there is a possibility for bankruptcy, lenders need to charge more than their target interest rate.

e.When a company faces a high probability of bankruptcy, shareholders have strong incentive to reduce risk to save the company.