8. As the CFO of Regency Health Care, one of Allison's primary responsibilities is to set the hurdle rate to use in evaluating future projects. Her approach is to set the hurdle rate at 12% more than the company's cost of capital, rounded to the next whole number. For the next year, she projects that the company's capital will be 60% debt with an overall interest rate of 4.25%, net of taxes. She knows that the private equity company that owns most of Regency's stock expects a return of 22% on its investment. With this information in mind, Allison decides that next year's hurdle rate will be ________.

Please solve with excel only.