The value of the levered firm and its cost of capital

The value of the levered firm and its cost of capital

Questions
(21-1)
Define each of the following terms:

Interest tax shields; value of tax shield

Adjusted present value (APV) model

Compressed adjusted present value (CAPV) model

(21-2)
Modigliani and Miller assumed that firms do not grow. How does positive growth change their conclusions about the value of the levered firm and its cost of capital?