The Gupta Company's cost of equity is 16 percent. It's before-tax cost of debt is 13 percent, and it's marginal tax rate is 40 percent. The stock sells at book value. Using the following balance sheet, calculate Gupta's after-tax weighted average cost of capital:

Assets Liabilities and Equity

Cash $120 $1,172

Account receivable 240 1, 728

Inventories 360

Net plant and equipment 2,160

Total assets $2,880 Total liabilities and equity = $2,880