In an ideal world where there are no taxes, bankruptcy costs or other financial frictions, when a company increases its financial leverage, which one(s) of the following will also increase?

A. Required return on equity

B. Required return on assets

C. WACC

D. Required return on equity and Required return on assets

E. Required return on equity and WACC

F. Required return on assets and WACC

G. All three will increase

H. None of the three will increase