Benjy Bakery is considering a project that is more risky than the firm's current operations. Therefore, the required return for this project will be $3\%$ higher than Benjy Bakery's cost of capital. Benjy Bakery has a cost of equity of $9\%$ and a pretax cost of debt of $8\%.$ The debt$-$equity ratio is $\mathrm{.}45$ and the tax rate is $25\%.$ What is the cost of capital for this project?