Keys Printing 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 30.00%.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%

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The Answer of Keys Printing 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 30.00%.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%

Keys Printing Plans to Issue a $1,000 Par Value,20-Year Noncallable