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What happens to a company's weighted average cost of capital (WACC) if the firm's corporate tax rate increases and if the Federal Reserve causes an

What happens to a company's weighted average cost of capital (WACC) if the firm's corporate tax rate increases and if the Federal Reserve causes an increase in the risk-free rate, respectively? (Consider the events independently and assume a beta of less than one.) Please select the correct option?

Tax rate increase Increase in risk-free rate
A Decrease WACC Increase WACC
B Decrease WACC Decrease WACC
C Increase WACC Increase WACC

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