Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long$-$term capital: debt and equity. The cost to Golden Gate of issuing debt is the after$-$tax cost of the interest payments on the debt, taking into account the fact that the interest payments are tax deductible. The cost of Golden Gate$$s equity capital is the investment opportunity rate of Golden Gate$$s investors, that is$,$ the rate they could earn on investments of similar risk to that of investing in Golden Gate Construction Associates. The interest rate on Golden Gate$$s $$81$ million of long$-$term debt is $9$ percent, and the company$$s combined federal and state income tax rates amount to $30$ percent. The cost of Golden Gate$$s equity capital is $15$ percent. Moreover, the market value $($and book value$)$ of Golden Gate$$s equity is $$162$ million.

Required:

Calculate Golden Gate Construction Associates$$ weighted$-$average cost of capital.

Note: Round your answer to $1$ decimal place. $($i$.$e$.,\mathrm{.}123$ should be entered as $12\mathrm{.}3)$ Golden Gate Construction Associates, a real estate developer

and building contractor in San Francisco, has two sources of

long$-$term capital: debt and equity. The cost to Golden Gate of

issuing debt is the after$-$tax cost of the interest payments on

the debt, taking into account the fact that the interest

payments are tax deductible. The cost of Golden Gate's equity

capital is the investment opportunity rate of Golden Gate's

investors, that is$,$ the rate they could earn on investments of

similar risk to that of investing in Golden Gate Construction

Associates. The interest rate on Golden Gate's $$81$ million of

long$-$term debt is $9$ percent, and the company's combined

federal and state income tax rates amount to $30$ percent. The

cost of Golden Gate's equity capital is $15$ percent. Moreover,

the market value $($and book value$)$ of Golden Gate's equity is

$$162$ million.

Required:

Calculate Golden Gate Construction Associates' weighted$-$

average cost of capital.

Note: Round your answer to $1$ decimal place. $($i$.$e$.,123$

should be entered as $12\mathrm{.}3)$