3) Consider a firm with capital from debt, preferred stock, and common equity in its capital structure. You are given that ra (1-T) = after-tax cost of debt, r, = cost of internal equity, and WACC =...

" represents "greater than") A) r. > WACC > ra (1-T). B) ra (1-T) > rs > WACC. C) r. > ra (1-T) > WACC. D) WACC > rs > ra (1-T). WACK "/>
Extracted text: 3) Consider a firm with capital from debt, preferred stock, and common equity in its capital structure. You are given that ra (1-T) = after-tax cost of debt, r, = cost of internal equity, and WACC = weighted average cost of capital. Which of the following statements is correct? (">" represents "greater than") A) r. > WACC > ra (1-T). B) ra (1-T) > rs > WACC. C) r. > ra (1-T) > WACC. D) WACC > rs > ra (1-T). WACK