A firm is planning to change its capital structure. Its current capital structure consists of 65% common equity, 25% debt, and 10% preferred stock. The pre-tax cost of debt is 4%, cost of preferred stock is 6% and cost of common equity is 12%. What is the change in its WACC (indicate an increase or a decrease in WACC) if this firms plan to adopt a new capital structure with 70% common equity, 10% debt, and 15% preferred stock if the costs for these components are 1.2% after-tax cost of debt, 6.5% cost of preferred stock, and 10% cost of common equity? The firm's tax rate stays at 40%.