Marginal Cost of Capital Calculation for ABC Corporation

ABC Corporation is a mid-sized manufacturing firm currently evaluating a new project that requires an investment of $5 million. The firm's current cost of equity is 12%, while its cost of debt is 6%, with a tax rate of 30%. ABC Corporation has a target capital structure of 70% equity and 30% debt. In the past year, ABC has raised funds through a bond issuance at a fixed cost of 6% and has recently seen its stock price increase, leading to an expected return of 13% on new equity financing. Considering the capital structure and market conditions, calculate the firm's marginal cost of capital (MCC) for the new project. Use this information to select the correct value of marginal cost of capital, expressed as a percentage.