Dyson Inc. currently finances with 20.0% debt (i.e., wd = 20%), but its new CFO is considering changing the capital structure to wd = 40.0% by issuing additional bonds and using the proceeds to repurchase and retire common shares so the percentage of common equity in the capital structure 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 5.50% Tax rate, T 25% Market risk prem., RPM 3.50% Current wd 20.0% Current beta, bL1 1.20 Target wd 40.0% a. 2.10 p.p. b. 1.11 p.p. c. 0.66 p.p. d. 2.84 p.p. e. 1.74 p.p.