Franklin Inc. has no retained earnings and expects to pay out all of its earnings as dividends in the future. Now the company uses the CAPM to calculate its cost of equity, its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would INCREASE its weighted average cost of capital (WACC), except:

a. The market risk premium increases

b. The companys beta is higher than the benchmark in the industry due to a new R&D project

c. Federal Reserve Bank recently issued a 30-year Treasury bond with a lower interest rate

d. The cost of issuing preferred stock increases

e. With the new Tax Reform, Franklin Inc. now has greater tax shield. Its overall corporate tax for the coming year is reduced by 0.5%.