Calculate the cost of capital (WACC) for your division based on the following information.

You found three independent firms solely engaging in the same business of your division. Firm A has a beta of 1.8 and D/E of 1.2, firm B has a beta of 1.5 and D/E of 1, and firm C has a beta of 1.2 and D/E of 0.8.

Your divisions D/E is 1.5. The tax rate is 40%. The before tax cost of debt is 8%. The risk free rate is 4% and the market return is 12%.

What is your division's WACC?

Enter only numbers, that is, if the answer is 12.67%, then just enter 12.67 (enter two decimals).