3 points Dyson Inc. currently finances with 20.0% debt, but its bankers suggest changing the capital structure to 60.0% debt by issuing additional bonds and using the proceeds to repurchase and retire common shares. The amount of assets will remain constant. Given the data shown below, by how much would this recapitalization change the firm's cost of equity? Risk-free rate Return on market Current beta 5.00% 11.00% 1.15 Tax rate, T Current w Target 40% 20% 60% O 11.00% O 25.90% O 16.40% 11.90% 3 points You plan to invest in one of two home delivery pizza companies, High and Low, that were recently founded and are about to commence operations. They are identical except for their use of debt (wd) and the interest rates on their debt--High uses more debt and thus must pay a higher interest rate. Based on the data given below, how much is Low's expected EPS? Applicable to Both Firms Capital $3,000,000 EBIT $500,000 Tax rate 35% Firm High's Data WA 70% Shares 90,000 Int. rate 12% Firm Low's Data W 20% Shares 240,000 Int. rate 10% O $1.19 O $1.35 O $1.79