7. Thompson Products has seen its marginal tax rate increase from 28% to 34% over the last two years and believes the change is permanent. The effects of this change on Thompson's current WACC and on its financial leverage over time are most likely a(n): A. Increase in both. B. Decrease in both. C. Decrease in WACC and increase in financial leverage. D. Increase in WACC and decrease in financial leverage. E. No effects on both firm's WACC and its financial leverage