Consider a firm with a debt-to-value ratio of 0.6 and a tax-rate of 25%. The current debt level is consider by ma confidence. If the firm announces its plan, then: I The stock price should increase. Il The cost of equity should decrease. III The cost of debt should decrease. Only I. Only II. Only III. Only I and II. All the alternatives are correct. many to be risk-free. The firm is currently considering reducing its debt-to-value ratio to 0.4 in order to be able to pay its debt with more