1. Which of the following would increase a firms WACC before tax? a. A firm invests in an average-risk project using equity, rather than debt financing. b. A firm issues shares and uses the proceeds to pay off a bank loan. c. A pharmaceutical research company develops a 100% effective COVID vaccine, which reduces its systematic risk in the market. d. A supermarket chain decides to establish hardware stores which increases its sensitivity to market fluctuations. e. A firm issues bonds and uses the proceeds to repurchase stock.