Question 3 4 pts The modified dividend payout ratio will, typically, be smaller than the conventional dividend payout ratio. (Assuming the company buys back some shares.) True False Question 4 4 pts In DCF valuation, a company can increase its equity value by borrowing more money provided that the after-tax cost of debt exceeds the return on capital. (Assume all other inputs are fixed.) O True False Question 5 4 pts If the corporate income tax rate becomes 0% then greater leverage ratios will lead to an increase in ROE. True False