Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.0 while the risk-free return is 8 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $1,100 that have a coupon rate of 7 percent. The firm is financed with $100 million of common shares (market value) and $30 million of debt. What is the after-tax weighted average cost of capital for Droz's. if it is subject to a 35 percent marginal tax rate? Round your intermediate calculation to five decimal places and final percentage answer to two decimal places. 16.1896 14.27% 18,61% 13.27%