Megatronix uses the subjective approach to assign discount rates to projects. For a particular project, the subjective adjustment

is $+5\mathrm{.}75$ percent. The firm has a pretax cost of debt of $6\mathrm{.}8$ percent and a cost of equity of $12$ percent. The debt$-$equity ratio is

$0\mathrm{.}55$ and the tax rate is $24$ percent. What discount rate should Alpha Industries use for this project?

Discount rate $=\%$