If cost of debt r_D and expected rate of return on equity r_S both increase, WACC will necessarily increase as well. Assume (1) no bankruptcy, and (2) corporate tax rate can be zero or positive. What do you think?

	A.	Yes, WACC will necessarily increase
	B.	No, WACC will necessarily decrease
	C.	No, WACC will necessarily remain unchanged
	D.	No, WACC may increase or decrease, but WACC will be always lower than both rD and rS.
	E.	No, WACC may not necessarily increase, but WACC will always be between rD and rS.