The cost of debt,r_d,is normally less than r_s,so r_d(1 - T)will normally be much less than r_s.Therefore,as long as the firm is not completely debt financed,the weighted average cost of capital (WACC)will normally be greater than r_d(1 - T).

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This is true because the cost of debt is typically lower than the cost of equity, so when calculating the weighted average cost of capital (WACC), the cost of debt will have a larger weighting than the cost of equity. Additionally, the use of debt financing can also provide tax benefits, further reducing the cost of debt.

The Cost of Debt,rd,is Normally Less Than Rs,so Rd(1 -

The Cost of Debt,r_d,is Normally Less Than R_s,so R_d(1 -