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Dyson Inc. currently finances with 20.0% debt (.e., W = 20%), but its new CFO is considering changing the capital structure to wa = 46.0%

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Dyson Inc. currently finances with 20.0% debt (.e., W = 20%), but its new CFO is considering changing the capital structure to wa = 46.0% by issuing additional bonds and using the proceeds to repurchase and retire common shares so the percentage of common equity in the capital structure we=1 - wa declines, 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.) Risk-free rate RF 6.00% Tax rate. T 2596 Market risk prem. RPM 3.50% Current wa 20.09 Current beta, bu 1.65 Target wa 46.096 a. 3.76 b.2.20 p. 091 pp O d. 5.96 pp 3.69 p.pl

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