1. increased unchanged reduced

2. increase doesn't affect decreased

3 higher unchanged lower

4 increase doesn't change decreased

From the theory about firm's capital structure by Merton Miller and Franco Modigliani, we know that for a tax- paying firm, a larger debt amount results in [Select] annual tax deductions. This, in turn, [Select] [Select] taxes paid by the firm each year, and so the current value of the interest tax shield [Select] will be value of the expected financial distress costs in the future. . However, at the same time, a larger debt amount TES the present