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20) Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing? A) increased agency costs B)

20) Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing?

A) increased agency costs

B) increased probability of financial distress (bankruptcy) due to fixed interest payments

C) alternative tax shields to those supplied by interest payments

D) All of the above offset the tax advantage of debt as a source of financing.

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