Which of the following statements is FALSE?

	No corporate tax benefit arises from incurring interest payments in excess of EBIT
	The optimal level of leverage from a tax saving perspective is the level such that interest equals EBIT.
	A biotech firm might be developing drugs with tremendous potential, but it has yet to receive any revenue from these drugs. Such a firm will not have taxable earnings. In that case, a tax-optimal capital structure does not include debt.
	In general, as a firm's interest expense approaches its expected taxable earnings, the marginal tax advantage of debt increases, limiting the amount of equity the firm should use