Corcovado Pharmaceuticals. Corcovado Pharmaceutical's cost of debt is 7.00%. The risk-free rate of interest is 5.00%. The expected return on the market portfolio is 11.00%. Corcovado's effective tax rate is 30%. Its optimal capital structure is 40% debt and 60% equity. If Corcovado's beta is estimated at 1.2, significantly lower because of the continuing profit prospects in the global energy sector, what is its weighted average cost of capital? (Keep four decimal points, do not use percentage.)