Last year Hamdi Corp. had sales of $425,000, operating costs of $380,000, and year-end assets (which is equal to its total invested capital) of $380,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.0%, and the firm's tax rate was 25%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50\% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 7.5%. By how much would the ROE change in response to the change in the capital structure? Do not round your intermediate calculations. a. 2.89 p.p. b. 2.51 p.p. c. 0.32 p.p. d. 6.56 p.p. e. 3.35 p.p