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Which of the following is true about the relationship between Ru (unlevered cost of capital), Re (cost of equity), and WACC for a levered firm?

Which of the following is true about the relationship between Ru (unlevered cost of capital), Re (cost of equity), and WACC for a levered firm?

WACC>Ru>Re

Ru>Re>WACC

WACC>Re>Ru

Re>Ru>WACC

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