The company is a medium size closely held business. You have looked at recent survey data and determined that the market risk premium is 6.0% (return on the market of 9% less 20-year treasury rate of 3%). You have obtained comparable industry betas and think a beta of 1.3 is reasonable to apply and debt in the industry is 25% of the market value of total invested capital and market interest rates for debt are 5.0 %. You have also researched small stock premiums and believe a 5.6% additional small stock premium is warranted. You also believe an additional specific company risk premium of 3.0% is warranted because the company has a high concentration of sales with two customers. Your analysis of new tax law indicates a 25% tax rate is expected. Determine the discount rate to utilize in your discounted cash flow method