A company may not want to use more debt in its capital structure since

	a.	the cost of debt is always higher than the cost of common equity [i.e., rd(1-T) > rs] for any given firm.
	b.	doing so could cause the component costs of debt and equity [both rd(1-T) and rs] to rise.
	c.	Both of the above
	d.	Neither of the above