Droz's Hiking Gear Ltd has found that its 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 also has 7-year maturity $1 000 par value bonds outstanding with a current price of $767.03. The bonds have an annual coupon rate of 7%. Required: If the company is financed with $120 million of ordinary shares (market value) and $80 million of debt, then what is the approximate after-tax weighted average cost of capital for Droz's if it is subject to a 35% company tax rate (round to the nearest 0.5%)? 10.2% 11.76% 11.88% 13.35%