Dyson Inc. currently finances with $20\mathrm{.}0\%$ debt $($i$.$e$.,w_d=20\%),$ but its new CFO is considering changing the capital structure so $w_d=72\mathrm{.}0\%$ by issuing additional bonds and using the

proceeds to repurchase and retire common shares so the percentage of common equity in the capital structure $(w_c)=1-w_d.$ Given the data shown below, by how much would this

recapitalization change the firm's cost of equity? Do not round your intermediate calculations. $($Hint: You must unlever the current beta and then use the unlevered beta to solve the

problem.$)$

a$.11\mathrm{.}44\%$

b$.10\mathrm{.}75\%$

c$.12\mathrm{.}03\%$

d$.11\mathrm{.}56\%$

e$.11\mathrm{.}65\%$