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 21% debt financed, and you anticipate its debt cost of capital will be 7%.

If its corporate tax rate is 38%, what is your estimate of its WACC?

The equity cost of capital is ___%. (Round to one decimal place.)