A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions: $($ See table below$)$ If the firm were to shift toward a more leveraged capital structure $($i$.$e$.,$ a greater percentage of debt in the capital structure$),$ the weighted average cost of capital would

TABLE

Source of capital $/$ Target Market Proportions $/$ After$-$Tax Cost

Long$-$term Debt$/45\%/5\%$

Preferred Stock $/10/14$

Common Stock Equity $/45/22$

A$)$ increase.

B$)$ remain unchanged.

C$)$ decrease.

D$)$ not be able to be determined.