Venica Limited wants to accelerate its loan repayments and issues equity to achieve this. Which statement is correct?

Its likely that:

a.

The companys taxable income will be lower because of the higher interest tax shields.

b.

Because of the increased tax payment, the companys firm free cash flow (FFCF or CFFA) will be lower.

c.

The weighted average cost of capital (WACC) after-tax will decrease because of the higher interest tax shields

d.

The WACC before tax will increase

e.

The debt-to-equity ratio will increase.