Please answer this question:

Firm L has debt with a market value of $$200,000$ and a yield of $9\%.$ The firm's equity has a market value of $$300,000,$ its earnings are growing at a rate of $5\%,$ and its tax rate is $40\%.$ A similar firm with no debt has a cost of equity of $12\%.$ Under the MM extension with growth, what is Firm L$\text{'}$s cost of equity?

Question $4$ options:

$1)$

$11\mathrm{.}4\%$

$2)$

$12\mathrm{.}0\%$

$3)$

$12\mathrm{.}6\%$

$4)$

$13\mathrm{.}3\%$

$5)$

$14\mathrm{.}0\%$