Killer Burgers' capital structure consists of 40 percent debt, 10 percent preferred stock, and 50 percent common stock. If Killer raises new capital, its after-tax cost of debt will be 5.5 percent, its cost of preferred stock will be 8 percent, its cost of retained earnings will be 12.2 percent, and its cost of new common equity will be 14.2 percent. Killer must raise $120,000. If management expects the firm to generate $55,000 in retained earnings this year, what is Killer's marginal cost of capital to raise the needed funds? Round your answer to two decimal places.

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