Which of the following statements is true concerning debt and equity?
A. In most cases, the cost of debt for Firm A is greater than the cost of equity for Firm A.
B. The cost of debt for Firm A is lower than the cost of equity for Firm A for most cases.
C. The after-tax cost of debt is higher than the before-tax cost of debt.
D. The cost of debt decreases as the debt to asset ratio increases.