Question: From a tax shield perspective, what is the expected relationship between a firm's profitability and its level of debt? Multiple choice question. As profitability increases,

From a tax shield perspective, what is the expected relationship between a firm's profitability and its level of debt? Multiple choice question. As profitability increases, a firm will initially decrease the level of debt and then increase the level of debt. As profitability decreases, a firm will increase the level of debt. There is no relationship between a firm's profitability and level of debt. As profitability increases, a firm will increase the level of debt

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