An analyst following global has just relayed the following info on the company:

Stock:

4 million shares outstanding

Current Price: $60

Shareholders Equity: $100 million

Projected annual dividend: $2.50

Dividend Growth rate = 3%

Debt:

200,000 bonds outstanding

Current Price: $1,250

Face Value: $1000

Term to maturity: 6 years

Global bonds pay an annual coupon at a rate of 8%. The current risk free rate is 2%, while the market portfolio premium is 5.5%. The tax rate facing the firm is 21%.

WHAT IS GLOBALS COST OF EQUITY?