Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 1.7 while the risk-free return is 8 percent and the expected return on the market is 14 percent. It has 8-year semiannual maturity bonds outstanding with a price of $767.03 that have a coupon rate of 8 percent. The firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 40 percent marginal tax rate? Round your final percentage answer to two decimal places. 13.32% O 13.98% O 11.76% O 11.88%