If a firm increases its percentage of debt in its capital structure, what will happen to kcs, everything else being equal?

• Ak_cswill increase, because expected cash-flow growth will be higher.
• Bk_cswill decrease, because the cost of debt is lower than the cost of equity.
• Ck_cswill increase, because the stock's beta will increase if the firm uses a higher percentage of debt.
• Dk_cswill decrease, because the stock's beta will decrease if the firm uses a higher percentage of debt.