For Q.19) to Q.20), please refer to the following problem: Western Lumber Company expects to generate net earnings (NE) of $ 4.25 MM and this NE is expected to grow at a constant rate of 4% per year thereafter. The company has an equity cost of 10% and a debt cost of 6%. Corporate tax rate for Western Lumber is 35%. Western Lumber always maintains a debt to equity ratio of 0.40. 20. The Government is contemplating the reduction of Western Lumber's tax rate from 35% to 30%. If this reduction materializes, then the PV of this infinite stream of NE would be reduced by: O a. (1.5) % O b. (2.0)% O c. (2.5) % O d. (2.7)% O e. (3.0) %