The stock market data is given in the following table.

Correlation Coefficients
	Telmex	Mexico	World	SD(%)	R (%)
Telmex	1.00	0.90	0.60	18	?
Mexico		1.00	0.75	15	14
World			1.00	10	12

The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns ( RR ). The risk-free rate is 8%.

Required:

Suppose now that Telmex has made its shares tradable internationally via cross-listing on NYSE. Again using the CAPM paradigm, estimate Telmexs equity cost of capital.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer IS NOT 14.48!!!