Question: Given corporate taxes, why does adding debt to the capital structure increase firm value? Group of answer choices Personal tax rates are the same as

Given corporate taxes, why does adding debt to the capital structure increase firm value?
Group of answer choices
Personal tax rates are the same as marginal corporate tax rates.
Earnings before interest and taxes are fully taxed at the corporate rate, and personal tax rates are the same as marginal corporate tax rates.
Earnings before interest and taxes are fully taxed at the corporate rate.
Extra cash flow goes to the firm's investors rather than the tax authorities.

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