Ali Inc. has a target debt-to-equity ratio of 2/3. The firm has no preferred stock. The firm's bonds have a coupon rate of 9% and YTM of 8.5%, and the firm is subject to a 30.1% corporate tax rate. The firm has common stock with a beta of 1.25. the risk free rate on Treasury bills is 4% and the expected market risk premium is 10%. What is the minimum after-tax rate of return that Ali must earn on its investments? (answer with four decimal places, not in %)