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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.
- rs > re > rd > WACC.
- re>rs>WACC>rd.
- WACC > re > rs > rd.
- rd > re > rs > WACC.
- WACC > rd > rs > re.
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