Merrimack Pharmaceuticals has expected earnings of $$1,320,000$ and a market value of equity of $$12,400,000.$ The firm is planning to issue $$4,700,000$ of debt at $5$ percent interest and use the proceeds to repurchase shares at their current market value. Ignore taxes. What will be the cost of equity after the repurchase?

$14\mathrm{.}21\%$

$14\mathrm{.}09\%$

$13\mathrm{.}97\%$

$13\mathrm{.}85\%$

$13\mathrm{.}73\%$