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The stock market data given by the following table. R (%) Telmex Mexico World Correlation...

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The stock market data given by the following table. R (%) Telmex Mexico World Correlation coefficients Telmex Mexico World 1.00 0.90 0.60 1.00 0.75 1.00 SD(%) 18 15 10 ? 14 12 The above table provides the correlations among Telmex, a telephone/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 6%. Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the CAPM paradigm, estimate Telmex's equity cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.) Equity cost %

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