Question 6 Consider a firm in a Mogliani-Miller setting, and add corporate taxes and costs of financial distres the vertical axis. Which statements are correct? As leverage (D/E) increases, the present value of the firm under MM-assumptions increases As leverage (D/E) increases, the present value of the tax shield increases As leverage (D/E) increases, the present value of costs of financial distress decreases As leverage (D/E) increases, the total value of the firm first decreases, then increases As leverage (D/E) increases, the total value of the firm first increases, then decreases As leverage (D/E) increases, the risk of default increases 2 points ncial distress. Consider the firm in a graph, with leverage D/E on the horizontal axis, and present value ncreases es