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3 For a typical firm with a given capital structure of debt and common equity, which of the following is correct and why? Note: There

3 For a typical firm with a given capital structure of debt and common equity, which of the following is correct and why? Note: There is only one correct answer.
a. rd > WACC > rs.
b. rs > rd > WACC.
c. WACC > rs > rd.
d. rd > rs > WACC.
e. rs > WACC > rd.

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