Assume the following information for Bubble Co., a U.S.-based MNC that is considering obtaining funding for a project in France:

U.S. risk-free rate = .05

French risk-free rate = .06

Risk premium on dollar-denominated debt provided by U.S. creditors = 0.01

Risk premium on euro-denominated debt provided by German creditors = .05

Beta of project = 1.6

Expected U.S. market return = .12

U.S. corporate tax rate = 0.34

French corporate tax rate = .35

What is Bubbles cost of dollar-denominated debt?