T. Lundell Enterprises is an all-equity funded firm that operates in two businesses - publishing and entertainment in two countries the United States and Mexico. The breakdown of revenues (in millions of dollars} for the firm is provided below: US Mexico Publishing $500 $250 Entertainment $500 $250 You have collected the following information on the company: a. The unlevered beta of being in the publishing business is 0.9, whereas the unlevered beta of being the entertainment business is 1.20. b. The U.S. treasury bond rate is 4.5% and die ten-year Mexican government peso bond rate is 2.5% c. Mexico is rated AA for local currency and foreign currency borrowings and the typical default spread for AA rated countries is 0.50%. d. Mexican equity markets volatility is 30% while US equity market volatility is 20%. e. The equity risk premium for a mature market is 4%. Estimate the cost of equity in peso terms for Lundell's Mexican entertainment operations. Riskfree Rate T. 5-0. 5: 2%; Beta: 1. 2%; ERP=4%[0. BID. 2): 5% ll Cost of Equity=14. 2%