From the theory about firm's capital structure by Merton Miller and Franco Modigliani, we know that for a tax-paying firm, a smaller debt amount results in [Select] annual tax SOOR AUPR INTERRE NAVED DEAS FERURS IVES deductions. This, in turn, [Select] taxes paid by the firm each year, and so the current value of the interest tax shield will be [Select] However, at the same time, a smaller debt amount [Select] expected financial distress costs in the future. the present value of the