If a company increases its debt ratio, but leaves its operating income (EBIT) and total assets unchanged, which of the following is most likely to occur:

	a.	The company's tax liability will fall.
	b.	The company's net income will rise.
	c.	The company's basic earning power will fall.
	d.	Answers a and b are correct.
	e.	None of the answers above is correct.