Which of the following statements is correct assuming that the corporate tax rate is zero?

a. For a successful firm, leverage can increase dividends per share.

b. Even when leverage increases dividend per share for the successful firm, the firm’s share value will tend to remain unaffected if investors adjust their cost of equity in accordance with the CAPM.

c. When leverage increases dividend per share for the successful firm, the firm’s share value will tend to increase if investors maintain their cost of equity in the firm as it was prior to the increase in leverage.

d. All the above statements are essentially correct.