A company is $40\%$ financed by debt. The interest rate is $10\%.$ The risk free rate is $5\%,$ and the expected market risk premium is $8\%.$ The beta of the company's common stock is $0\mathrm{.}5.$

What is the company cost of capital? Type your answer using a percentage with two decimal places. Example $99\mathrm{.}81.$ You do not need to type the $\%$ sign $[$costofcapital$]\%.$ You are not given a tax rate here, so the question is seeking a general understanding of "cost of capital". In a more technical approach to calculating the weighted average cost of capital $($WACC$),$ you would use the after$-$tax cost of debt!