Question: Question 13 4 pts Circle Inc. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The company's

Question 13 4 pts Circle Inc. 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 40.00%, but Congress is considering a change in the corporate tax rate to 25.00%. By how much (in percentage point) would the component cost of debt used to calculate the WACC change if the new tax rate was adopted (cost at new rate - costat old rate)? If your answer is 12.34% then input 12.34 in the answer box. If your answer is -12.34% then input - 12.34 in the answer box.

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