a) All else equal, an increase in the retention ratio will increase the value of a firms stock. True or False? Please briefly explain.

b) The cost of equity is always equal to or greater than the cost of debt of a firm. True or False? Please briefly explain.

c) Assume that Congress recently passed a provision that will enable firms to double their depreciation expense for the upcoming year but will have no effect on their sales revenue or the tax rate. Assume that the company uses the same depreciation method for tax and stockholder reporting purposes. The new provision will reduce firms' net income and cash flow in the upcoming year. True or False? Please briefly explain.