Consider that the Modigliani$-$Miller theorem holds for the environment where the firm AMORA operates.

The firm AMORA has a market value at time $1$ equal to $2500$ EUR.

The market value at time $2$ depends on the weather condition. If the weather is good, the market value at time $2$ will be $3210$ EUR. If the weather is bad, the market value at time $2$ will be $1970$ EUR.

The probability of a good weather is $0\mathrm{.}55$ and the probability of a bad weather is $0\mathrm{.}45.$

The firm AMORA issues the risk$-$free all$-$weather bonds promising to pay $820$ EUR at time $2.$

The risk$-$free rate is equal to $4\%,$ what is the required rate of return for equity?

A$)4\%$

B$)73\mathrm{.}02\%$

c$)6\%$

D$)7\mathrm{.}04\%$

$($The right answer id D$=7\mathrm{.}04)$