22.Which is false? a. Firms whose value and cash flows are more stable (for example, electricity companies) tend to have lower levels of debt than firms with more volatile values and cashflows. b. Two key qualitative factors determine the present value of financial distress costs: (1) the probability of financial distress and (2) the magnitude of the costs after a firm is in distress. c. Electricity firms are likely to incur relatively low costs when they are in financial distress, due to the availability of tangible assets that can be easily liquidated. d. The magnitude of the financial distress costs is likely to vary by industry