ABC and XYZ are identical firms in all respects except for their capital structures. ABC is all$-$equity financed with $$530,000$ in stock. XYZ has the same total value but uses both stock and perpetual debt; its stock is worth $$310,000$ and the interest rate on its debt is $7\mathrm{.}9\%.$ Both firms expect EBIT to be $$62,222.$ Ignore taxes. The cost of equity for ABC is $\_\_\_\_\_\_\_\_\%$ and for XYZ it is $\_\_\_\_\_\_\_\_\%.$

a$.11\mathrm{.}74$; $12\mathrm{.}48($Confirmed Incorrect$)$

b$.12\mathrm{.}09$; $9\mathrm{.}82$

c$.12\mathrm{.}09$; $12\mathrm{.}48$

d$.11\mathrm{.}74$; $14\mathrm{.}4$