Messan Co., a U.S.-based firm, borrows U.S. dollars at an interest rate of 10% per year. its beta is 1.0. The long-term annualized risk-free rate in the U.S. is 6%. The stock market return in the U.S. is expected to be 16% annually. Messan's target capital structure is 40% debt and 60% equity. Messan Co. is subject to a 30% corporate tax rate. Estimate the cost of capital to Messan Co. If an additional 3% risk premium is assessed for "going international" for the cost of equity, how would this change the estimation of Messan's cost of capital? Discuss some alternative ways of determining a firm's cost of capital in a multinational environment.