Lorames Services' tax rate is 40%, its beta is 1.10 , and it uses no debt. However, the CFO is considering moving to a capital structure with 30% debt and 70% equity. If the risk-free rate is 5.0% and the market risk premium is 6.0%, by how much would the firm's cost of equity change as a result of the capital structure shift? 1.53% 2.26% 2.05% 1.70% 1.87%