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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. re: cost of common stock; rp: cost of preferred stock; rd: cost of debt 1. rp > re > rd > WACC. 2. re > rp > WACC > rd 3. WACC > re > rp > rd. 4. rd > re > rp > WACC. 5. WACC > rd > rp > re

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