True or False questions:

1. A company can arrange an additional net borrowing to increase the FCFE and then increase its theoretical stock price (T/F?)
2. Liquidity preference hypothesis predicts that if the spot market yield curve is flat, the future interest rate will decrease. (T/F?)
3. A positive value of income gap computed by subtracting the market value of Rate Sensitive Assets with the market value of Rate Sensitive Liabilities implies that the bank's earning will go up if the market interest rate surges during the coming planning period. (T/F?)

(PLEASE EXPLAIN WHY BOTH TRUE AND FALSE SENTENCES!!!)