An analyst has collected data about Devers Co$.$ and a world market index. The world market index implies an equity risk premium of $5$ percent, and Devers has a beta of $1\mathrm{.}2$ with respect to the index. The appropriate risk$-$free return is $4$ percent. Analysts also estimate that the firms beta calculated with respect to U$.$S$.$ markets is equal to $1\mathrm{.}5$ and the domestic risk premium is $6\%.$ For the project they are considering in Argentina, a segmented market risk premium of $13$ percent is calculated and the segmented beta with respect to this factor is $0\mathrm{.}8.$ The Argentina$$s country credit spread is $7\%$ and the ratio of market standard deviation in Argentina to market standard deviation in the U$.$S$.$ is $1\mathrm{.}6.$ for the country risk rating approach, analyst estimate the a $=0\mathrm{.}35$ and d $=-0\mathrm{.}07,$ and the country risk rating is $40.$

$9.$ If Devers is estimating the cost of common equity for subsidiaries in developed, integrated foreign markets, what is the appropriate cost of common equity?

a$.10\mathrm{.}0\%$

b$.12\mathrm{.}1\%$

c$.16\mathrm{.}8\%$

d$.18\mathrm{.}4\%$

e$.20\mathrm{.}4\%$

$10.$ If Devers is estimating the cost of common equity for Argentina, according to the global segmented CAPM, what is the appropriate cost of common equity?

a$.10\mathrm{.}0\%$

b$.12\mathrm{.}1\%$

c$.16\mathrm{.}8\%$

d$.18\mathrm{.}4\%$

e$.20\mathrm{.}4\%$

$11.$ If Devers is estimating the cost of common equity for Argentina, according to country credit spread approach, what is the appropriate cost of common equity?

a$.10\mathrm{.}0\%$

b$.12\mathrm{.}1\%$

c$.16\mathrm{.}8\%$

d$.18\mathrm{.}4\%$

e$.20\mathrm{.}4\%$

$12.$ If Devers is estimating the cost of common equity for Argentina, according to country risk rating approach, what is the appropriate cost of common equity?

a$.10\mathrm{.}0\%$

b$.12\mathrm{.}1\%$

c$.16\mathrm{.}8\%$

d$.18\mathrm{.}4\%$

e$.20\mathrm{.}4\%$