Based on the information below, what is the cost of equity of Firm X (a company in Brazil), using the CAPM model with country risk premium? (Please show all work).

Yield on U.S. 10-year Treasury bond	5.5
Yield on Brazil 10-year Treasury bond	10.5
Annualized standard deviation of Brazil stock index	35
Annualized standard deviation of Brazilian real-denominated government bond	20
Risk-free rate in Brazil	3
Expected market return in Brazil	6
Equity beta of Firm X	1.5