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Assuming all M&M assumption hold and there is no taxes, if a firm decides to increase its debt - to - equity ratio, the firm

Assuming all M&M assumption hold and there is no taxes, if a firm decides to increase its debt-to-equity ratio, the firms weighted average cost of capital (WACC) will ________________, the cost of equity will ____________ and its cost of debt will _____________.
a.
Decrease; increase; decrease;
b.
Stay the same; increase; stay the same
c.
Stay the same; stay the same; stay the same
d.
increase; increase; increase

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