Dye Industries currently uses no debt, but its new CFO is considering changing the capital structure to 31.0% debt (wd) by issuing bonds and using the proceeds to repurchase and retire some common shares so the percentage of common equity in the capital structure wc = 1 wd declines. Given the data shown below, by how much would this recapitalization change the firm's cost of equity, i.e., what is rL - rU? Do not round your intermediate calculations. Risk-free rate, rRF 5.50% Tax rate, T 25% Market risk prem., RPM 3.50% Current wd 0% Current beta, bU 1.65 Target wd 31.00% a. 9.64 p.p. b. 1.95 p.p. c. 0.65 p.p. d. 3.06 p.p. e. 2.59 p.p.