Industrial Automation Co. has two divisions: one is very risky, and the other has significantly less risk. The company uses its investors' overall required rate of return to evaluate projects. It is most likely that the firm will become: Less risky over time, and its value will decrease Less risky over time, and its value will increase Riskier over time, and its value will increase Riskier over time, and its value will decrease Which of the following statements is correct? If a firm wants to lower its cost of debt, it can simply issue debt with a lower coupon rate. The cost of raising funds from retained earnings is usually a lot cheaper than the cost of debt financing, because the firm already possesses the funds in retained earnings. A firm's WACC should decrease if its tax rate increases, but the yield to maturity of its noncallable bonds remains the same and all other factors are held constant