A firm has a debt-equity ratio of .62% and a tax rate of 35%.The firm has a 500,000 bond issue oustanding that is currently valued at 94% of par value, it carries a 7% semi-annual coupon and matures in14.5 years. The common stock is selling for $56 per share and a beta of 1.08. The firm is analyzing a project that it feels is riskier than the company's current operations and thus the firms managers have assigned an adjustment factor of 1.5% to the project, what is the projects required rate of return if the market rate is 10.8% and the treasury bills are yielding 2.7%?