The stock market data given by the following table.

Correlation Coefficients

Telmex Mexico World SD$(\%)$ R$$

$(\%)$

Telmex $1\mathrm{.}000\mathrm{.}900\mathrm{.}6018?$

Mexico $1\mathrm{.}000\mathrm{.}751514$

World $1\mathrm{.}001012$

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.

Equity Cost $=$