Question 1(30 points): a) Briefly explain the following figure Maximum value of firm Costs of financial distress PV interest tax shields Value of levered firm Market value of the firm Value of unlevered firm Optimal amount of debt Debt b) Briefly explain the recking order theory of capital structure c) According to Baian and Zingales study: 1) Firma with high ratio of fixed assets to total assets have higher debt raties IT) More profitable firms have lowes debt ratiss ILI) Firms with higher ratios of market-to-beck value have lower debt ratios Please determine which one() support trade-off thesty, and recking order theory? How