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For a typical firm, which of the following is correct? (The cost of equity is r e, theweighted average cost of capitalis WACC, and the

For a typical firm, which of the following is correct? (The cost of equity is r_e, theweighted average cost of capitalis WACC, and the debt cost is r_d.)

r_e > WACC > r_d
WACC > r_e > r_d
r_d > r_e > WACC
WACC > r_d > r_e

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