Which of the following statements is CORRECT? A) Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce its WACC. B) Increasing a company's debt ratio will typically reduce the costs of both debt and equity. However, this action still may raise the company's WACC. C) Increasing a company's debt ratio will typically increase the cost of debt, but decrease the cost of equity. This action may increase the company's WACC up to a certain point. D) Since a firm's beta coefficient is not affected by its use of financial leverage, leverage does not affect the cost of equity. E) None of the statements above is correct