All else being equal, which of the following factors will increase WACC. (See PPT slides 20-23, 25) 3. 1) An increase in risk-free rate. 2) An increase in market risk premium. 3) An increase in tax rate. (No, higher tax lowers after-tax cost of debt) 4) An increase in flotation cost 5) An increase in equity beta. 4. Trc Services' CFO is interested in estimating the company's WACC and has collected the following information:The company has 26-year, 7.5% annual coupon bonds that have a face value of $1,000 and sell for $920. (semi-annually compounding) The risk-free rate is 6%. The market risk premium is 5%. . The stock's beta is 1.2. * The company's tax rate is 40%. * The company's target capital structure consists of 70% equity and 30% debt. The company uses the CAPM to estimate the cost of equity and does not include flotation costs as part of its cost of capital. What is Trojan's WACC