Messan Co$.($a U$.$S$.$ firm$)$ borrows U$.$S$.$ funds at an interest rate of $8$ percent per year. Its beta is $0\mathrm{.}8.$ The long$-$term annualized risk$-$free rate in the United States is $4$ percent. The

stock market return in the United States is expected to be $14$ percent annually. Messan's target capital structure is $20$ percent debt and $80$ percent equity. Messan Co$.$ is subject to a

$30$ percent corporate tax rate. Estimate the cost of capital to Messan Co$.$ Do not round intermediate calculations. Round your answer to two decimal places.

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