Which of the following statements are correct: I. Everything else being equal, riskier firms have lower P/E ratios. II. Everything else being equal, an increase in the dividend growth rate should lead to a higher stock price. III. If a firm plows retained earnings into projects that have a return on investment that is less than the cost of equity capital, its stock will be worth more than its 'cash cow' value alone. IV. As interest rates go up, stock prices should go down.

II only

IV only

II and IV only

I, II, and IV only

I, II, III, and IV