问题
单项选择题
Assume that a company has equal amounts of debt, common stock, and preferred stock. An increase in the corporate tax rate of a firm will cause its weighted average cost of capital (WACC) to:（）
A. rise.
B. remain the same.
C. fall.
答案
参考答案：C
解析：
Recall the WACC equation:
WACC=[wdx kdx (1-t)]+(wps, x kps)+(wcex ks)
The increase in the corporate tax rate will result in a lower cost of debt, resulting in a lower WACC for the company.