Maryland Light, a U.S. light manufacturer, is considering an investment in Japan. The dollar cost of equity for Maryland is 10.47 %10.47%.

You are in the corporate treasury department, and you need to know the comparable cost of equity in Japanese yen for a project with free cash flows that are uncorrelated with spot exchange rates. The risk-free interest rates on dollars and yen are r Subscript $ Baseline equals r$=5.25%

and r Subscript yen Baseline equals r=0.88%,

respectively. Maryland is willing to assume that capital markets are internationally integrated. What is the yen cost of equity?

The yen cost of equity is nothing %.

(Round to two decimal places.)