xxx is 12%

Format A&B Granite Works maintains a debt-equity ratio of 0.65 and has a tax rate of 32 percent. The firm does not intue preferred stock The pre-tax cost of debt is xxx. There are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of 310 a share. The current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. This year, the impadan annual dividend of $1.10 a share and expects to increase that amount by 2 percent each year. Using an average expected cout of equity, what is the weighted average cost of capital