--> XC IRR will decrease 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 decreases: hms are less likely to issue debt After-tax cost of debt increases: firms are less likely to issue debt After-tax cost of debt decreases: firms are more likely to issue debt After-tax cost of debt increases, forms are more likely to issue debt Question 4 20 pts