Adjusted

WACC.

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:Equity:

3636%

and cost of

17.7417.74%

Preferred stock:

1515%

and cost of

12.2812.28%

Debt:

4949%

and cost of

11.111.1%

before taxesWhat is the adjusted WACC for Lewis if the tax rate isa.

3535%?