CahayaCo. is based in Malaysia. About 60% of its sales are from exports to Portugal. Cahaya Co. has no other international business. It finances its operations with 40% equity. The remainder of funds are financed with both ringgit-denominated and euro-denominated debt, which are divided equally. It borrows its funds from a Malaysian bank at an interest rate of 9 percent per year and from a Portugal bank at 8 percent per year. The long-term risk-free rate in Malaysia is 6 percent. The long-term risk-free rate in Portugal is 11 percent. The stock market return in Malaysia. is expected to be 13 percent annually. Cahaya's stock price typically moves in the same direction and by the same degree as the Malaysian stock market, thus its market risk is 1.0. Its earnings are subject to a 20% corporate tax rate in Malaysia and 30% in Portugal. Estimate the cost of capital to Cahaya Co.