NEDENZIO 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 ABS - 10 [ Select] the present value of the expected financial distress costs in the future. However, at the same time, a smaller debt amount results in [Select] annual tax deductions. This, in turn, [Select ] taxes paid by the firm each year, and so the current value of the interest tax shield is [ Select ]