You are attempting to estimate the cost of capital for a new project. Your firm has

a current debt$-$to$-$equity ratio of $0\mathrm{.}5$ and faces a corporate tax rate of $26\%.$ Given

that your equity is priced to yield $16\mathrm{.}4\%$ EAR and your debt yields on average

$10\mathrm{.}8\%$ p$.$a$.,$ what is the estimated cost of capital for your firm?

Please report your answer so that if your WACC is $10\%$ you enter the value $10$

$($without decimal notation, not $0\mathrm{.}10).$

Answer: