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1) For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its

1) For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure.

  1. rs > re > rd > WACC.
  2. re>rs>WACC>rd.
  3. WACC > re > rs > rd.
  4. rd > re > rs > WACC.
  5. WACC > rd > rs > re.

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