eBook Which of the following statements is most correct? (Hint: Work Problem 4-16 before answering 4-17, and consider the solution setup for 4-16, as you think about 4-17.) a. The higher the interest rate on a firm's debt, the lower its BEP ratio, other things held constant. b. The higher a firm's debt ratio, the lower its BEP ratio, other things held constant. c. If a firm's expected basic earning power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, adding assets and financing them with debt will raise the firm's expected return on common equity (ROE). d. The higher a firm's tax rate, the lower its BEP ratio, other things held constant. e. Statement c is false, but statements a, b, and d are true. -Select- - Icon Key Question 12 of 30