Ryan Inc. plans to announce that it will issue $2.09 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a 6 percent annual coupon rate. Ryan is currently an all-equity firm worth $7.94 million with 490,000 shares of common stock outstanding. After the sale of the bonds, Ryan will maintain the new capital structure indefinitely. Ryan currently generates annual pre-tax earnings of $1.59 million. This level of earnings is expected to remain constant in perpetuity. Ryan is subject to a corporate tax rate of 40 percent. What is the required return on Ryan's equity after the restructuring?

a)	12.87%
b)	13.15%
c)	11.99%
d)	14.22%