CorpFin Qs following, default, expected, why, only

bleach

I know these may sound silly but please help me clarify the following points:

1. Under MM, increased used of debt is not associated with an increased expected default rate, right? Then why does it increase the cost of equity?

2. Do post-offer defenses increase acquisition cost or only pre-offer ones do?

3. When a high-growth firm acquires a low-growth firm, per-share profits are temporarily boosted, thus lowering future growth prospects on a per-share basis. Please explain this.

4. If after the merger, the cost of financing is lower, why would that decrease the share price?

5. ATCO's earnings last year was $2.25 per share and dividend was $.55 per share. The firm has a 25% target payout ratio and plans to bring the dividend up to the target payout ratio over three years. While next year's earnings are expected to increase 54%, why would next year's payout ratio actually decrease? Can you use common sense to answer this without calculation?

Thanks a lot!