Which of the following statements is INCORRECT? O If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. O If two firms have the same ROA, the firm with the most debt can be expected to have the higher ROE. An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin. Which of the following is true of the Baumol model? Note that the optimal cash transfer amount is C*. a. If the fixed costs of selling securities or obtaining a loan (cost per transaction) increase by 10%, then C* will increase by 10%. O b. If the average cash balance increases by 10%, then the total holding costs will increases by 10%. O c. If the average cash balance increases by 10% the total transactions costs will increase by 10%