Which of the following statements is most correct? O Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC. O 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 c are corres None of the statements above is correct