Dye Industries currently uses no debt, but its new CFO is considering changing the capital structure to 31.5% 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 6.00% Tax rate, T 25% Market risk prem., RPM 3.50% Current wd 0% Current beta, bU 1.60 Target wd 31.50% a. 1.93 p.p. b. 2.58 p.p. c. 9.13 p.p. d. 0.64 p.p. e. 3.31 p.p.