Gaucho Services starts life with all-equity financing and a cost of equity of 14%. Suppose it refinances to the following market-value capital structure:

Debt (D)	45%	at rD = 9.4%
Equity (E)	55%

Use MMs proposition 2 to calculate the new cost of equity. Gaucho pays taxes at a marginal rate of T_c = 30%. Calculate Gauchos after-tax weighted-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)