TRUE or FALSE and explain your answer ONLY if FALSE.

a)An increase in the "Account Payable" balance between the beginning and ending of a period of time (such as a year) contributes to the cash flow from operations for the period.

b)Because the cost of both debt and equity increase when debt is substituted for equity in a firm's capital structure, the weighted average cost of capital will also increase as the firm uses more of its debt capacity.

c)Under CAPM the expected rate of return on any applicable asset will always be greater than the risk-free rate.