Nova currently has a capital structure of 55 percent debt and 45 percent equity, but is considering a new product that will be produced and marketed by a separate division. The new division will have a capital structure of 65 percent debt and 35 percent equity. Nova has a current beta of 1.3, but is not sure what the beta for the new division will be. Bausch is a firm that produces a product similar to the product under consideration by Nova. Bausch has a beta of 1.4, a capital structure of 40 percent debt and 60 percent equity and a marginal tax rate of 30 percent. Nova's tax rate is 30 percent. What will be Nova's weighted cost of capital for this new divisionif the after-tax cost of debt is 8 percent, the risk-free rate is 4 percent, and the market risk premium is 10 percent?