Your firm has a before tax return of $2000 on an investment of $1100 and a marginal tax rate of 35%. The overall cost of capital is 9%. The firm currently uses 45% debt financing with an expected return of 6% if it increases its use of debt to 55%, the expected return on the debt will be 7% By what percent will the value of the firm increase (decrease) if the firm decides to adopt the new capital structure? Round your answer to the nearest tenth of a percent Group of answer choices 0.27% 0.37% 0.16% 0.40% Your firm has a before tax return of $2000 on an investment of $1100 and a marginal tax rate of 35%. The overall cost of capital is 9%. The firm currently uses 45% debt financing with an expected return of 6% if it increases its use of debt to 55%, the expected return on the debt will be 7% By what percent will the value of the firm increase (decrease) if the firm decides to adopt the new capital structure? Round your answer to the nearest tenth of a percent Group of answer choices 0.27% 0.37% 0.16% 0.40%