Assume the following information for Sazea Bhd. a U.S. based MNC that is considering to obtain funding for a project in Malaysia:

U.S. risk-free rate = 4%, Malaysian risk-free rate = 5%, Risk premium on dollar-denominated debt provided by U.S. creditors = 3%, Risk premium on euro-denominated debt provided by Malaysian creditors = 4%, Beta of project = 1.2, Expected U.S. market return = 10%, U.S. corporate tax rate = 30% and Malaysian corporate tax rate = 40%.

Calculate Sazeas cost of dollar-denominated equity.