30. Dye Industries currently uses no debt, buts its new CFO is considering changing the capital structure to 49.0% debt by issuing bonds and using the proceeds to repurchase and retire some common shares so the percentage of common equity in the capital structure is 51%. Given the data shown below, by how much would this recapitalization change the firm's cost of equity? Risk-Free Rate, rrf = 6%; Market Risk Premium, RPm = 4%, Current beta = 1.30, Tax rate = 40% Current debt ratio = 0, Target debt ratio = 49%. A) 2.59% B) 1.91% C) 2.92% D) 1.57% E) 2.25%