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?
A. 0.57%
B. 0.63%
C. 0.70%
D. 0.77%
E. 0.85%
Answer: C
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GATT requires patent protection for 50 years
Indicate whether the statement is true or false