Dyson Inc. currently finances with 20.0% debt (i.e., w_d = 20%), but its new CFO is considering changing the capital structure to w_d = 72.0% 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.)

Risk-free rate, rRF	5.00%		Tax rate, T	25%
Market risk prem., RPM	3.00%		Current wd	20.0%
Current beta, bL1	1.30		Target wd	62.0%