Question 3 20 pts Assume the current corporate income tax rate is 35%. If the rate were increased to 50%, how would this impact the after tax cost of debt? All else equal, would firms be more or less likely to issue debt as opposed to equity? After-tax cost of debt increases; forms are less likely to issue debt After-tax cost of debt decreases; firms are more likely to issue debt After-tax cost of debt decreases; firms are less likely to issue debt After-tax cost of debt increases; firms are more likely to issue debt