Refi Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm's debt$-$equity is expected to rise from $35$ percent to $50$ percent. The firm currently has $$2\mathrm{.}7$ million worth of debt outstanding. The cost of debt is $6\mathrm{.}4$ percent. The firm expects to generate a cash flow of $$940,000$ per year in perpetuity and pays no taxes. b$.$ What is the cost of capital for the company before the repurchase announcement? $($Hint: consider how the cash flows of the company relate to its value.$)$