The following information relates to the Atlas Division of Global Enterprises: Interest rate on debt capital: 8% Cost of equity capital: 12% Market value of debt capital: $45 million Market value of equity capital: $75 million Income tax rate: 30% On the basis of this information, Atlas's weighted-average cost of capital is closest to (Do not round your intermediate calculations.):

3.65%.

8.58%.

9.60%.

10.50%.

None of these.