Consider a company that has debt of 85 million in bonds (PV of the bonds has already been calculated), 45 million market value of preferred stock, and 100 million market value of common stock. The required rates of return for bonds, preferred stock, and common stock are 5%, 9%, and 17.5%, respectively. The tax rate of the company is 40%

A) Compute the companys WACC.

B) What does this value represent?

C) Assume the company takes on new debt. How will this affect the WACC of the company? What approximate required rate of return would you expect (range of values is okay here)?