Company A has a standard deviation of 33.92 and an estimated correlation of 0.32 with the local market and an estimated correlation of 0.73 with the world market. The local market has an average return of 24.58% and a standard deviation equal to 20.24%. The world market has an average return of 12.86% and a standard deviation equal to 11.91%. What is Company A's equity cost of capital if markets are fully integrated and the risk-free rate is 2%? (note: your answer should be in the form of 12.34% )