The current WACC for Van der Welde is $12\%.$ The company announced a debt offering that raises the WACC to $12\mathrm{.}3\%.$ The most likely conclusion is that for Van der Walde:

Question $13$Select one:

a$.$

The company's prospects are improving

b$.$

equity financing is cheaper than debt financing.

c$.$

the company's debt$/$equity ratio is about to react the optimal range.

d$.$

the company's debt$/$equity ratio has moved beyond the optimal range.

e$.$

the company's prospects are NOT improving.