Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 1.5 while the risk-free return is 8 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $767.03 that have a coupon rate of 7 percent. The firm is financed with 10,000,000 common shares with a book value of $10/share and a market price of $12/share) and $80 million (market value) bonds outstanding. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 35 percent marginal tax rate