In the previous question, if the Korean government bond rate in nominal Won is $12\%,$ Korea$$s rating is BBB

$($Country bonds with this rating earn a spread of $2\%$ over the U$.$S$.$ long bond rate$)$ and Korean equities are twice as volatile as Korean bonds.

The equity risk premium is $5\mathrm{.}5\%($US based$).$

Estimate the cost of equity for this company.