Smith and T Co$.$ currently is financed with $10\%$ debt and $90\%$ equity. However, its CFO has proposed that the firm issue new long$-$term debt and repurchase some of the firm$$s common stock. Its advisers believe that the long$-$term debt would require a before$-$tax yield of $10\%,$ while the firm$$s basic earning power is $14\%.$ The firm$$s operating income and total assets will not be affected. The CFO has told the rest of the management team that he believes this move will increase the firm$$s stock price. If Smith and T Co$.$ proceeds with the recapitalization, which of the following items are also likely to increase? Check all that apply.

Cost of equity $($rs$)$

Basic earning power $($BEP$)$

Net income

Return on assets $($ROA$)$

Cost of debt $($rd$)$