Leeding Engines Ltd. 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 increase Riskier over time, and its value will decrease Riskier over time, and its value will increase Less risky over time, and its value will decrease Which of the following statements is correct? When all other factors are held constant, a higher tax rate will lower a firm's WACC only if the firm uses debt financing. If a firm wants to lower its cost of debt, it can simply issue debt with a lower coupon rate. The market value of a firm's debt and equity will continuously change throughout the day, but the book value of debt and equity tends to stay more stable over time. Consequently, the firm should use the book-value weight to define its optimal capital structure