The present value of the tax shield from debt: I. has has no value if the firm's tax rate is 5%. II. is equal to the annual interest expense multiplied by the tax rate, all divided by the interest rate on the firm's debt . III. is equal to the tax rate multiplied by the market value of debt. IV. will increase if the firm' reduces its leverage.

I and III only

II and IV only

II and III only

III only

III and IV only

IV only

II, III, and IV