2. Your company has EBIT of $5,000,000, debt of $100,000,000 and required return of 20 percent. Currently, the corporate tax rate is 30 percent, the personal income tax rate on bond income is 30 percent, and the personal tax rate on stock income to 30 percent. Suppose that the Senate is proposing to reduce the corporate tax rate to 20 percent, and reduce the personal tax rate on stock income to 20 percent, and leave the personal tax rate on bond income at 30 percent. The House of Representatives is proposing to increase the corporate tax rate to 40 percent, leave the personal tax rate on stock income at 30 percent, and leave the tax rate on bond income at 30 percent. a. (15) Should your company lobby for the Senate plan, the House plan, or lobby against both to stay with the current tax rates (calculations required)? b. (5) Briefly explain why the Senate's proposed tax rates are better or worse for your company compared to the current tax rates. c. (5) Briefly explain why the House's proposed tax rates are better or worse for your company compared to the current tax rates. 2. Your company has EBIT of $5,000,000, debt of $100,000,000 and required return of 20 percent. Currently, the corporate tax rate is 30 percent, the personal income tax rate on bond income is 30 percent, and the personal tax rate on stock income to 30 percent. Suppose that the Senate is proposing to reduce the corporate tax rate to 20 percent, and reduce the personal tax rate on stock income to 20 percent, and leave the personal tax rate on bond income at 30 percent. The House of Representatives is proposing to increase the corporate tax rate to 40 percent, leave the personal tax rate on stock income at 30 percent, and leave the tax rate on bond income at 30 percent. a. (15) Should your company lobby for the Senate plan, the House plan, or lobby against both to stay with the current tax rates (calculations required)? b. (5) Briefly explain why the Senate's proposed tax rates are better or worse for your company compared to the current tax rates. c. (5) Briefly explain why the House's proposed tax rates are better or worse for your company compared to the current tax rates