Question: 2. Chapter MC, Section 09, Problem 012 Westbrook's Painting Co. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon,

2. Chapter MC, Section 09, Problem 012 Westbrook's Painting Co. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The company's marginal tax rate is 25%, but Congress is considering a change in the corporate tax rate to 15%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Oa. 0.70% Ob. 0.77% Oc. 0.85% Od. 0.57% Oe. 0.63%

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