You have been asked to value a private company ABC. You have identified a group of firms that are comparable to ABC. The average beta of this group is 1.38, and the average Debt/Equity ratio is 1.40. The tax rate is 30%. The risk-free rate is 2%, and the market risk premium is 5%. The before-tax cost of ABCs debt is 6%. The management team of ABC will maintain a Debt/Asset ratio of 65% in the future. Calculate the cost of capital for this company.