Question 8 1 pts Which of the following statements is most correct? Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce the company's WACC. O Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing: however, it still may raise the company's WACC Statements a and care correct. None of the statements above is correct