Consider the following statements and decide whether they are true or false: The common stock valuation model gives no consideration to expected capital gains. How a firm splits its income between retained earnings and dividends does not affect its rate of growth. Although debt financing is usually the cheapest component of capital, it cannot be used to excess because interest rates may decrease Select one: a. All of the above are true O b. Two of the above are true O c. One of the above is true O d. None of the above are true