The weighted average cost of capital for a firm

A. will remain the same when the firm increases its use of debt financing because the overall risk of the firm stays the same

B. may increase or decrease, depending on the relative costs of debt and equity

C. will decrease as the firm increases its use of debt financing because the cost of debt is lower than the cost of equity financing

D. will increase as the firm increases its use of debt financing because the increased use of debt increases the firms risk