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 $27\%$ debt financed, and you anticipate its debt cost of capital will be $5\%.$ If its corporate tax rate is $40\%,$ what is your estimate of its WACC?

The equity cost of capital is

$\%.($Round to two decimal places.$)$