Hili TA E. BET . Normal 1 No Spac... Subtle Em... Emphasis Tale Subtitle Paragraph che Replace A Seled- Styles (b) The coronavirus pandemic has no doubt increased the probability and costs of financial distress for many companies, particularly in hard-hit industries such as tourism, hospitality and discretionary consumer goods. Explain the effect of an increase in financial distress costs on firm value and the optimal level of debt in a company's capital structure using relevant theory. (10 marks) 7 of 10 h