In Perfect Capital Markets, which of the following statements is false?

	a.	The cost of equity capital is a positive linear function of the D/E ratio
	b.	The rate of return on equity increases as you add more debt to the firm
	c.	With all-equity companies, the rate of return to shareholders is always equal to the rate of return on assets.
	d.	If the rate of return on assets is greater than the interest on debt, then leverage results in lower rates of return on equity.
	e.	If the rate of return on assets is less than the interest rate on debt, then leverage results in lower rates of return on equity.