Cordelion Communications is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The

stock issue would have no effect on total assets, the interest rate Cordelion pays, EBIT, or the tax rate. Which of the following is likel$)$

to occur if the company goes ahead with the stock issue?

The ROA will decline.

Taxable income will decrease.

Net income will decrease.

The times interest earned ratio will decrease.

The tax bill will increase.