5. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently Lewis has the following financing pattern: Capital Weight Cost Common stock 35% 14% Preferred stock 15% 11% Debt 50% 10% a) (5 pts) What is the WACC if Lewis' marginal tax rate is 37%? b) (5 pts) What is the WACC if the marginal tax is 21%? c) (5 pts) holding all else constant, what is the expected effect on asset prices as the marginal tax rate is reduced from 37% to 21%