For a typical firm with a given capital structure of debt and common equity, which of the following is correct? Note: There is only one correct answer.
a. rd (1-t) > WACC > rs.
b. rs > rd (1-t) > WACC.
c. WACC > rs > rd (1-t)
d. rd (1-t) < WACC < rs.
e. rd (1-t) > rs > WACC.
where,	rd (1-t) is the after-tax cost of long-term debt
	rs is the return on equity
	WACC.is the Weighted-Average Cost of Capital
ANS: