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Question
For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure.a. re > rs > WACC > rd.
b. WACC > re > rs > rd.
c. rd > re > rs > WACC.
d. WACC > rd > rs > re.
e. rs > re > rd > WACC.
Answer
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