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If you calculated WACC for a firm, in what order (from largest to smallest) would you expect to see WACC, cost of equity(re), and cost
If you calculated WACC for a firm, in what order (from largest to smallest) would you expect to see WACC, cost of equity(re), and cost of debt (rd)? All rates are after taxes, and assume that the firm operates at its target capital structure.
A. re> rd> WACC. |
B. re> WACC > rd. |
C. WACC > re> rd. |
D. rd> re> WACC. |
E. WACC > rd> re. |
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