If the U.S.government Increased the Corporate Tax Rates

If the U.S.government increased the corporate tax rates:

A) we would expect to no change in the capital structure since it is independent of the component costs of capital.
B) we would expect to see higher levels of equity since there would be less of a tax advantage for debt.
C) we would expect to see higher debt levels since debt would become cheaper relative to equity.
D) We would expect to see higher percentages of preferred stock since 70 percent of dividends are not taxed by corporations.