19. The costs of financial distress depend on the: l) Probability of financial distress II) Corporate and personal tax rates Ill} Magnitude of costs encountered if financial distress occurs a. lonly b. land ll only c. I, II, and Ill d. land "I only 20. MM Proposition l with corporate taxes states that: l) Capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield II) By raising the debt-to-equity ratio, the firm can lower its taxes and thereby increase its total value I") Firm value is maximized by using an all-equity capital structure a. | only D. II only 0. III only d. land ll 21 . Assuming that bonds are sold at a fair price, the benefits from the interest tax shield go to the: a. Managers of the firm b. Bond holders of the firm c. Stockholders of the firm d. Lawyers of the firm