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In the phrase:

The stock scandal was extremely damaging to his company's reputation.

What is the verb tense? I think "was damaging" is past continuous and "extremely" is an adverb modifying "damaging". But is "damaging" actually an adjective? And then, the verb tense is past?

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The verb 'damage' needs a direct object to be a part of a Predicative Verb in such a sentence. That is why 'damaging' is a predicative adjective here. A tense of the Predicative Verb is the Past Simple in the grammar construction with the linking verb 'be' here.

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