C currently has zero debt. It is a zero growth company, and it has the data show below. Now the company is considering using some debt, moving to the new debt/assets ratio indicated below. The money raised would be used to repurchase stock at the current price. It is estimated that the increase in risk resulting from the addtional 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 WACC change, i.e., what is the WACC old - WACC new? New Debt/Assets 55% New Equity/Assets 45% Interest Rate new=rd 7.0% Orig cost of equity 10.0% new cost of equity, r2 11.0% tax rate 40% A.2.74% B.3.01% C.3.32% D. 3.65% THANK YOU