Jacque Ewing Drilling, Inc. has a beta of 1.5 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the market risk premium is 9 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 40 percent? (Round to two decimal places) 11.20% 18.50% 13.40% 16.80