Savoy Inc. is a company based in Indonesia, with substantial interests in the hotel$/$tourism business and in forest products.

Business Operating. Income Unlevered Beta of Comparable

Hotel$/$Tourism $0\mathrm{.}651\mathrm{.}49$

Forest Products $0\mathrm{.}370\mathrm{.}9$

Cash $0\mathrm{.}16$

Savoy also has a debt to equity ratio of $0\mathrm{.}5.$ Indonesia has a rating of B$-,$ the default spread for B$-$ rated bonds is $0\mathrm{.}03,$ and the Indonesian equity index is three times more volatile than the Indonesian long term bond. Estimate the cost of equity for this firm in U$.$S$.$ dollar terms, if the treasury bond rate is $0\mathrm{.}05.($The tax rate for the firm is $0\mathrm{.}3,$ and the historical risk premium in the US is $0\mathrm{.}06)$