A company currently has zero debt $($i$.$e$.,w_d=0).$ It is a zero growth company, and additional firm data are shown below. Now the company is considering using some debt, moving $10$ the

new capital structure indicated below. The money raised would be used to repurchase slock at the current price. It is estimated that the increase in risk resulting from the additional leverage

would cause the required rate of return on equity to rise somewhat, as indicated below. If this plan were carried out, by how much would the WACC change, i$.$e$.,$ what is WACCOId $-$

WACCNew? Do not round your intermediate calculations.

a$.2\mathrm{.}6\%$

b$.2\mathrm{.}1\%$

c$.2\mathrm{.}0\%$

d$.1\mathrm{.}5\%$

e$.1\mathrm{.}75\%$