Langer Inc. is a German company with operations in Germany, Hungary and Poland. You have been given information on the breakdown of revenues and data on government bond rates and relative volatility (Std deviation of equity/Std deviation of govt bond) in each country.

Government Bond RateRelative Volatility

(Equity Std Dev/ Bond Std Dev)

CountryRevenues(in millions of Euros)In local CurrencyIn EurosGermany 500.001.50%1.50%1.50Poland 300.004.00%2.50%1.20Hungary 200.005.00%3.00%1.25

Estimate the cost of equity for Langer,in Euros, assuming that it has a beta of 1.20. (You can assume that the equity risk premium for a mature market is 5%.)