Newark Co. is based in the United States. About 35 percent of its sales are from exports to Portugal. Newark Co. has no other international business. It finances its operations with 30 percent equity and 70 percent dollar-denominated debt. It 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 United States is 5 percent. The long-term risk-free rate in Portugal is 11 percent. The stock market return in the United States is expected to be 12 percent 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 percent corporate tax rate. Estimate the cost of capital to Newark Co. Do not round intermediate calculations. Round your answer to two decimal places