You are evaluating an investment project for BHP in Canada, for which you are trying to estimate the project cost of equity. You intend to use single factor CAPM for the Canadian market to estimate cost of equity. You know that yield on 10-year Canadian government bond is 0.033. The beta of the projects with similar risk vs. Canadian market index is 1.4 and the beta of the projects with similar risk vs. Global Market Index is 1.0.

Unfortunately, you lack information about well researched Canadian market risk premium, and the historical risk premium estimates do not sound reasonable. With your extensive research you collected the following additional data:

Beta of Canadian Market vs. Global Market = 1.5.

Beta of U.S. market vs. the global market =1.15.

The U.S. market risk premium = 0.061

Estimate the cost of equity for this project using single factor domestic (Canadian) capital assets pricing model (Please do not round intermediate steps, round final answer exactly to 4 decimal places)