Hornung's Computers is considering a change to the company's capital structure, which currently consists of 24% debt and the remainder equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate is 3%, the market risk premium is 5%, and the firm's tax rate is 30%. It currently has a before-tax cost of debt of 12%. It currently has a cost of equity, as determined by the CAPM, of 11%. If the company increases its reliance on debt by 34% (e.g., if it currently has 20% debt and it increased it by 10% the company would now be financing with 30% debt) and uses the proceeds to repurchase the company's outstanding stock, it expects its before-tax cost of debt to increase by 50 basis points and the cost of equity to increase by 80 basis points. By how much would the company's weighted average cost of capital (WACC) change?

Answer should come out to -0.35