Alpha Inc. currently finances with 10.0% debt (i.e., wd = 10%), but its new CFO is considering changing the capital structure so wd = 50.0% by issuing additional bonds and using the proceeds to repurchase and retire common shares so the percentage of common equity in the capital structure (wc) = 1 wd. Given the data shown below, by how much would this recapitalization change the firm's cost of equity? Please show work.

Risk-free rate, rRF	3.00%	Tax rate, T	30%
Market risk premium, RPM	5.00%	Current wd	10%
Current beta, bL1	1.15	Target wd	50%