Which of the following statements is correct? a. The present value of the tax savings due to

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Which of the following statements is correct?

a. The present value of the tax savings due to the corporate tax deductibility of interest rates on the firm’s debt provides the firm with a theoretical “corporate tax shield”.

b. The above “corporate tax shield” is an argument in favour of debt.

c. Financial distress is an argument against the use of debt beyond a certain point.

d. All of the above can be argued as essentially correct statements.

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