Newark Co. is based in the United States. About 30% of its sales are from exports to Portugal. Newark Co. has no other international business. It finances its operations with 40% equity and 60% dollar-denominated debt. It borrows its funds from a U.S. bank at an interest rate of 9% per year. The long-term risk-free rate in the United States is 6%. The long-term risk-free rate in Portugal is 11%. The stock market return in the United States is expected to be 13% annually. Newark`s stock price typically moves in the same direction and by the same degree as the U.S. stock market. Its earnings are subject to a 20% corporate tax rate. Estimate the cost of capital to Newark Co.