8. Here is a (very) simplified balance sheet for Northwest Natural as of Dec 31, 2021, reported on its annual statement (fiscal year 2021) Northwest Natural Balance Sheet As of Dec 31, 2020 Debt Equity $Billions 1.3 1.0 The firm's market value of debt was $1.3 billion and market value of equity was $1.8 billion. The company's cost of equity is estimated to be 6.5% and the market risk premium was 7%. If the Treasury bill rate (i.e., risk free rate) was 2.5%, the current yield-to- maturity of the company's bond was 3% and the coupon rate of the company's bond was 5%. a. Assume corporate tax rate was 21%, what was the WACC (i.e., the company cost of capital)? (8 pts) b. If corporate tax rate decreases to 10%, the company cost of capital will be (Select one answer) (2 pts) (Higher/No difference/Lower)