Flint Hills Petroleum Co. is based in Las Vegas. Approximately 30% of its sales are from exports to Mexico, and the company has no other international business. It finances its operations with 40% dollar-denominated debt and 60% equity. Flint Hills borrows its funds from a U.S. bank at an interest rate of 8 percent per year. The long-term risk-free rate in the U.S. is 5 percent, whereas the long-term risk-free rate in Mexico is 9 percent. The stock market return in the U.S. is expected to be 10 percent annually. Flint Hills Petroleums stock price typically is more volatile than the U.S. stock market, so it uses a Beta of 1.2 for its stock. Its earnings are subject to a 25% corporate tax rate. What is the cost of capital for Flint Hills Petroleum Co.?