$1)$ Carlos $$Cookie$$ Carrasco is looking to build a winter home on Margarita Island in his native Venezuela. The amount of

money he will spend is $$17$ mn$.$ He will finance the new home with $$14$ mn in borrowings at $7\%,$ and the remainder with

equity. If Mr$.$ Carrasco calculates his weighted average cost of capital $($WACC$)$ at $15\%,$ what would his cost of equity be$?$

$$

a$)10\mathrm{.}25\%$

b$)9\mathrm{.}24\%$

c$)8\mathrm{.}23\%$

d$)7\mathrm{.}22\%$

e$)6\mathrm{.}21\%$