Question: Please answer the following question according to the figure below. 1. How does increase in debt affect firm value when are no corporate taxes or

Please answer the following question according to the figure below. 1. How does increase in debt affect firm value when are no corporate taxes or financial distress costs? Give your explanation 2. How does increase in debt affect firm value when there are corporate taxes, but no financial distress costs? Give your explanation. 3. How does increase in debt affect firm value when corporate taxes and financial distress costs are taken into consideration? Give your explanation. Vloem - wo wi YA Det

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