A company can finance the funding need for a new derivatives transaction either with new debt or with new equity. The company's stockholders require a return of 10% and its bondholders a return of 5%. The company has no other transactions with the same counterparty. If the company chooses equity as opposed to debt, which of the following statements are true? Ignore tax effects.

Check all that apply:

a. The return required by stockholders increases.

b. DVA is higher with equity than with debt financing (in absolute value terms).

c. The return required by bondholders increases.

d. KVA is higher with equity than with debt financing (in absolute value terms).

e. none of these apply