XYZ Company has long$-$term debt of $233$ million and book value of shareholders$$ equity of $292$ million. The debt has been financed at an annual interest rate of $7\%.$ The estimated beta of the stock is currently $1\mathrm{.}5$ and the expected annual return on the market is $9\%.$ The annual Treasury bill rate is $3\%.$ There are $8\mathrm{.}5$ million shares outstanding, and the shares are trading at $42$ each. The tax rate is $35\%.$

i$.$

Calculate the weighted$-$average cost of capital $($WACC$)$ of XYZ$.$

ii$.$

If XYZ increases its long$-$term debt to $283$ million, it will use the additional debt to repurchase shares. Assuming that the company$$s borrowing rates are unchanged, how much additional value will be added to that of XYZ shareholders and what is the new WACC of XYZ$?$