10. Answer whether true/ false for the following questions a. A levered rm has its interest tax shield equal to the bankruptcy cost. This firm is more valuable than a comparable unlevered firm with same risk and asset size. b. The government Just announced tax increase from 20% to 30%. With everything else remaining constant. stock prices of levered rms would rise. c. The government just introduced long term capital gains tax which is the same as existing short term capital gains tax of 15%. If the dividend distribution tax is 20%. paying dividends over buyback is benecial for a stock holder. d. In a world with tax, replacing equity with debt would enhance a firm's stock price. e. In a world without tax and the MM world, an unlevered firm decided to take on debt and used the proceeds from debt to invest in a project yielding a positive NPV. In this situation. the firm's stock price remains unchanged