5.Which of the following statements is incorrect?
(A) Proponents of the management entrenchment theory of capital structure believe that managers choose a capitalstructure to avoid the discipline of debt and maintain their own job security.
(B)The pecking order hypothesis states that managers will have a preference to fund investment using retainedearnings, or debt, rather than equity.
(C) According to the empire building hypothesis, leverage increases firm value.
(D) The presence of financial distress costs can explain why firms choose debt levels that are too high to fully exploit.the interest tax shield.