Your Firm Has a Before-Tax Return of $1,800 on an Investment

Your firm has a before-tax return of $1,800 on an investment of $800 and a marginal tax rate of 25%. The overall cost of capital is 10%. The firm currently uses 30% debt financing with an expected return of 7%. If it increases its use of debt to 40%, the expected return on the debt will be 8%.
-Refer to the information above. 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.

A) decreases 0.2%
B) increases 1.1%
C) decreases 1.0%
D) increases 0.3%