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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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