Which of the following sfaternenty is most correct? The higher its debt ratio, the lower a firm's BEP ratio will be, other things held constant. If a firm's expected basic oarning power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, then adding arsets and linancing them with debt will decrease the firm's expected return on common equity (ROE) If a firm's expected basic eaming power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, then adding assets and linancing. them with debt will raise the firm's oxpected return on comnton equity (ROE) The higher its tax rate, the lower a firm's BEP ratio will be, other things held constant