. Your firm has debt worth $200,000, with a yield of 9 percent, and equity worth $300,000.It is growing at a 5 percent rate, and faces a 40 percent tax rate.A similar firm with no debt has a cost of equity of 12 percent.Under the MM extension with growth, what is its cost of equity?

a.9.36%

b.12.0%

c.12.8%

d.13.2%

e.14.0%