Semo Publishing's tax rate is 40%, its beta is 1.00, and it uses no debt. However, the CFO is considering taking on debt which will lead to a beta of 1.38. If the risk-free rate is 5.0% and the market risk premium is 6.0%, by how much would the capital structure shift increase the firm's cost of equity, r.? (Hint: find r, with a with no debt, and r, with debt and find the difference) Select one: a. 2.28% b. 2.05% C. 1.53% d. 1.70% e. 2.20%