Slater Co. is a U.S.-based MNC that finances all operations with debt and equity. It borrows U.S. funds at an interest rate of 13 percent per year. The long-term risk-free rate in the United States is 9 percent. The stock market return in the United States is expected to be 16 percent annually. Slater's beta is 1.6. Its target capital structure is 10 percent debt and 90 percent equity. Slater Co. is subject to a 30 percent corporate tax rate. Estimate the cost of capital to Slater Co. Do not round intermediate calculations. Round your answer to two decimal places. %