Suppose that the firm's cost of capital can be reduced from K under the local capital structure to k9 under an internationalized capital structure. The take-away lesson from the graph is that K Cost of capital (%) KY IRR Investment (S) Select one: O a. both kland K9 represent the cost of capital under international capital structures. o b. k' and K9 represent, respectively, the cost of capital under local and international capital structures; IRR represents the internal rate of return on investment projects; l' and represent the optimal investment outlays under the alternative capital structures. O c. the firm can then increase its profitable investment outlay from 1 to 9, contributing to the firm's value. O d. the systematic risk inherent in the stock of the firm is 19. O e. a reduced cost of capital increases, the firm's value not only through increased investments in new projects but also through revaluation of the cash flows from existing projects