(Solved): Question 3 of 20 Assume that the company, which does not pay any dividends, takes this action, and t ...

Question 3 of 20 Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and its tax rate all remain constant. Which of the following would occur? a. The company's interest expense would remain constant. b. The company would have less common equity than before. c. The company's taxable income would fall. d. The company's net income would increase. e. The company would have to pay less taxes.