Dye Industries currently uses no debt,but its new CFO is considering changing the capital structure to 49.0% debt (w_d)by issuing bonds and using the proceeds to repurchase and retire some common shares so the percentage of common equity in the capital structure (w_c)= 1 - w_d.Given the data shown below,by how much would this recapitalization change the firm's cost of equity,i.e. ,what is r_L - r_U? Do not round your intermediate calculations. A) 2.59% B) 1.91% C) 2.92% D) 1.57% E) 2.25%

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The Answer of Dye Industries currently uses no debt,but its new CFO is considering changing the capital structure to 49.0% debt (w_d)by issuing bonds and using the proceeds to repurchase and retire some common shares so the percentage of common equity in the capital structure (w_c)= 1 - w_d.Given the data shown below,by how much would this recapitalization change the firm's cost of equity,i.e. ,what is r_L - r_U? Do not round your intermediate calculations. A) 2.59% B) 1.91% C) 2.92% D) 1.57% E) 2.25%

Dye Industries Currently Uses No Debt,but Its New CFO Is