Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 1.5 while the risk-free return is 8 % and the expected return on the market is 14 %. It has 7-year maturity bonds outstanding with a price of $767.03 that have a coupon rate of 7%. If the firm is financed with $120,000,000 of common shares (market value) and $80,000,000 (bok value) of debt, then what is the after-tax weighted average cost of capital for Droz, if it is subject to a 35 percent marinal tax rate?