$($WACC$)$

Company A has $10,000$ bonds outstanding with a $6\%$ annual coupon rate, $3$ years to maturity, a $1,000,000$ Won face value, and a $1,050,000$ Won market price. The company's $200,000$ shares of preferred stock pay a $2,000$ Won annual dividend, and sell for $20,000$ Won per share. The company's $1,000,000$ shares of common stock are traded at $15,000$ Won per share and have a beta of $1\mathrm{.}5.$ The risk free rate is $4\%,$ and the market return is $12\%.$ The tax rate is $20\%.(A6\%,310,000,1,000,000,1,050,000.200,0002,000,20,000.1,000,00015,0001\mathrm{.}5.4\%,12\%.20\%.)$

A$.$ Calculate WACC of the company. $($ WACC$().)$ points$)$

B$.$ If the company issues additional $10,000$ bonds with the same condition as the existing bonds, what would WACC become? $(10,000,$ WACC $?)(10$ points$)$

C$.$ Do you agree that the firm value increases when more bonds are issued? $(?)(10$ points$)$