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  3. for a typical firm, which of the following sequenc

For a typical firm, which of the following sequences is NOT CORRECT? All rates are...

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Finance

For a typical firm, which of the following sequences is NOT CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure.

(kd = cost of debt; ks = cost of retained earnings; ke = cost of new common stock) Group of answer choices

ke > WACC > kd

All four sequences are correct.

ke > ks > WACC

ks > WACC > kd

ke > ks > kd

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