The cost of equity of Parallel Unlimited is currently $11\mathrm{.}7\%.$ Parallel has no debt and the market value of its equity is $$140$ million. The firm plans to issue $$28$ million of perpetual debt at $3\mathrm{.}5\%$ interest rate. The proceeds will be used to repurchase an equal value of equity shares. The tax rate is $54\%.$ Find the new cost of equity.

$10\mathrm{.}44\%$

$10\mathrm{.}55\%$

$9\mathrm{.}36\%$

$10\mathrm{.}97\%$

$12\mathrm{.}53\%$