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For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target

For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure. r_e: cost of common stock; r_p: cost of preferred stock; r_d: cost of debt

1.
r_p > r_e > r_d > WACC.

2.
r_e > r_p > WACC > r_d

3.
WACC > r_e > r_p > r_d.

4.
r_d > r_e > r_p > WACC.

5.
WACC > r_d > r_p > r_e

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