Dyson Inc. currently finances with 20.0% debt (i.e., wd = 20%), but its new CFO is considering changing the capital structure to wd = 49.5% by issuing additional bonds and using the proceeds to repurchase and retire 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? 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 3.50% Current wd 20.0% Current beta, bL1 1.50 Target wd 49.5% a. 2.42 p.p. b. 5.88 p.p. c. 3.46 p.p. d. 0.83 p.p. e. 3.86 p.p.