true or false

1. the higher the debt ratio of a firm the higher its equity ratio due to debt and equity are only two sources of capital

2. other things remaining equal the greater the proportion of capital that firm raises from debt the lower its beta will be

3. at a debt ratio of zero a firm's WACC must be equal to its cost of debt

4. firms that sell high-priced good or service should have higher beats that than firms that sell low-priced.

5.other things being equal companies that have high fixed costs relative to total costs are generally perceived as riskier by equity investors due to their costs are known in advance

6.a firm whose management does its best tpo pay a regular dividend does not need the discipline provided by debt