Savoy Inc. is a company based in Indonesia, with substantial interests in the hotel/tourism business and in forest products. Savoy also has a debt to equity ratio of 0.5 . Indonesia has a rating of B-, the default spread for Brated bonds is 0.03 , 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 0.05 . (The tax rate for the firm is 0.3 , and the historical risk premium in the US is 0.06 )