AmRail has been granted permission to transport passengers between major U.S. cities. The new company faces competition from regional railway companies that operate between major cities in their regions. The betas of the equity of the four major competitors (A, B, C, D) are 1.14, 1.17, 1.29, and 1.43; and the debt-to-equity ratios of these four companies (in the same order: A, B, C, D) are 0.14, 0.17, 0.29, and 0.43. Although these D/E ratios vary, all debt is considered risk-free in the market place because railways are expected to dominate all long-distance public transportation. Suppose the expected market risk premium (the average difference between the market return and the risk-free rate) is 6.5% and the risk free rate is 3.5%. What is the cost of capital (or discount rate) in percentage that you should use in valuing AmRail? Assume there are no taxes. (No more than two decimals in the percentage but do not enter the % sign.)