Johnson Ltd. is a UK-based MNC that finances its operations with debt and equity. It borrows British funds at an interest rate of 11% per year. Its…

Johnson Ltd. is a UK-based MNC that finances its operations with debt and equity. It borrows British funds at an interest rate of 11% per year. Its cost of equity is 15%. Its target capital structure is 20% debt and 80% equity. Johnson Ltd. is subject to a 30% corporate tax rate. Estimate the company’s cost of capital