the dood Suppose you are conducting a workshop on capital structure decisions and you want to highlight certain key issues related to capital structure. Your assistant has made a list of points for your session, but he thinks he might have made some mistakes. Review the list and identify which items are correct. Check all that apply. HANNO Workshop Talking Points A decrease in debt financing increases the risk of bankruptcy, and managers are encouraged to invest in high-risk projects. Interest paid on debt is deducted from a firm's pretax income, thus reducing the amount of taxes that it owes. An increase in debt financing increases the taxes that a company owes. An increase in debt financing beyond a certain point increases the risk of bankruptcy and financial distress. U In an event of liquidation, creditors will get their claims over a firm's assets before common shareholders