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

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This statement is true. The cost of debt is usually lower than the cost of equity, so rd(1-T) will be much lower than rs. As long as the company is not completely debt-financed, the weighted average cost of capital will always be higher than rd(1-T).

The Cost of Debt, Rd, Is Normally Less Than Rs