Why is the expected return on common equity always higher than the expected return on debt?

Group of answer choices

Debt cannot legally have much expected return.

Equity has less risk than debt

Debt has less risk than equity

Equity can only have a positive beta

When planning a firm's capital structure, we are striving for the weighted average cost of capital (WACC) that:

Group of answer choices

Balances the weights as evenly as possible between debt and equity

Balances the rates on debt and equity as evenly as possible

maximizes the value of the firm

Minimizes the value of the firm