All Else the Same, a Higher Corporate Tax Rate ____________________

All else the same, a higher corporate tax rate ____________________.

A) Will increase the WACC of a firm with debt and equity in its capital structure.
B) Will decrease the WACC of a firm with some debt in its capital structure.
C) Will not affect the WACC of a firm with debt in its capital structure.
D) Will decrease the WACC of a firm with only equity in its capital structure.
E) Will change the WACC of a firm with debt in its capital structure, but the direction is unknown.