You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry asset beta, you have already estimated an unlevered cost of capital for the firm of

8%.

However, the new business will be

22%

debt financed, and you anticipate its debt cost of capital will be

7%.

If its corporate tax rate is

36%,

what is your estimate of its WACC?

The equity cost of capital is

nothing%.

(Round to one decimal place.)