Volga Publishing is considering a proposed increase in its debt ratio, which would also increase the companys interest expense. The plan would involve issuing new bonds and using the proceeds to buy back shares of its common stock. The companys CFO thinks the plan will not change total assets or operating income, but that it will increase earnings per share (EPS). Assuming the CFOs estimates are correct, which of the following statements is CORRECT? a. Since the proposed plan increases Volgas financial risk, the companys stock price still might fall even if EPS increases. b. If the plan reduces the WACC, the stock price is also likely to decline. c. Since the plan is expected to increase EPS, this implies that net income is also expected to increase. d. If the plan does increase the EPS, the stock price will automatically increase at the same rate.