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Vpe Rare Minerals and Metals Inc's capital structure is briefly described below. Compute the company's weighted average cost of capital ("WACC). The company's marginal income tax rate is 25%. Calculate to 4 decimal places. Capital Capital Structure Weights Pre-Tax Cost Bonds 0.35 7.80% Preferred Stock 0.15 11.75% Common Stock 0.50 25.00% 16.57% 16.95% 16,31% 15.12% Question 10 8.55 pts If corporate income tax rates decrease, this change would tend to make a company's weighted average cost of capital because Increase because dividends on stock are deluctible for income tax purposes, and a higher income tax rate makes the after tax cost of equity capital lower. increase because interest expense on debt is deductible for income tax purposes, and a lower income tax rate makes the after-tax cost of debt higher decrease because interest expense on debt is deductible for income tax purposes and a lower income tax rate makes the after-tax cost of debt lower decrease because interest expense ondebt and dividends on stock are deductible for income tax purposes and a higher income tax rate makes the after tax cost of debt and equity capital lower