JeyJey Resorts has a current capital structure that is 60% equity, 30% debt, and 10% preferred stock. This is considered optimal. The owner of the hotel is considering a $50 million capital budgeting project. The finance team has estimated the following: Before-tax cost of debt: 7% Cost of preferred stock: 9% Cost of internal equity: 12.0% If all equity comes from internal sources, what should the company's cost of capital be for this project? Assume a tax rate of 21%