After viewing the video from CFI (with link below) which sho…
After viewing the video from CFI (with link below) which shows how to calculate the WACC for Brick and Mortar Co, answer the following questions. CFI – Weighted Average Cost of Capital.In the video a tax rate of 30% was used. Redo the calculation with a tax rate of 15%. If the WACC is the total combination of cost of equity and cost of debt, which of these two components does the reduced tax rate affect and show if that component of the WACC increase or decrease with the reduction of the tax rate to 15%. Based on this calculation explain what happens when the tax rate is reduced to the cost of capital.