he stock market data is given in the following table. Correlation Coefficients ...

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Accounting

he stock market data is given in the following table.
Correlation Coefficients
Telmex Mexico World SD(%) R(%)
Telmex 1.001.501.0018?
Mexico 1.001.201514
World 1.001012
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 ( R). 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.

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