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1.The interest tax shield is not at all related to the deductibility of interest expense. T F 2.Financial analyst feel the increases in debt relitive

1.The interest tax shield is not at all related to the deductibility of interest expense. T F

2.Financial analyst feel the increases in debt relitive to a firms equity holdings could increase the chance of bondholders not being paid. T F

3.A firm always becomes bankrupt when its assets are greater than its liabilities. T F

4.Legal and administrative costs make up direct bankruptcy costs. T F

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