A Company Generally Wants To Minimize Its WACC, Since Minimizing The WACC Increases The Value Of The Firm And, By Extension, The Value Of Its Stock. If The Company Uses Only Debt\&Common Equity Financing (The Two Most Common Sources Of Long-Term Funding), Then Its WACC Would Be: WACC=Wdrd(1T)+Wcers Also Note That Rs>Rd(1T) Because (1) Stockholders Are In A More Risky Position Than Bondholders,\&(2) Interest Expense Is Tax-Deductible, While Dividend Payments Are Not. In Light Of All This: a. Why Might The Firm Want To Use More Debt Financing (I.E. Increasing Wd& Decreasing Wce ? How Could This Decrease WACC? b. Why Might The Firm Not Want To Use More Debt Financing? How Could Doing So End Up Increasing The WACC, In Spite Of Part (A)