Question: Please answers 2 question below Question 3 (Same data) Assume UIP holds. What is the cost of capital in US$ to Malaysian investors? a. 12.3%

Please answers 2 question below Please answers 2 question below Question 3 (Same data) Assume UIP holds.

What is the cost of capital in US$ to Malaysian investors? a.

Question 3 (Same data) Assume UIP holds. What is the cost of capital in US$ to Malaysian investors?

a. 12.3%

b. 16.2%

c. 14.5%

d. 15.4%

Question 16 4 points Save Answt A US firm is interested in acquiring a Malaysian company in the electronics industry. Suppose Let MS stand for the Malaysian currency, Ringgit Information relevant to the cost-of-capinal the U.S. and Malaysian markels are segmented calculations are as tollows U.S. Mar 0.6 1.00 16% 8.5% The difference in costs of capital in MS between the two segmented markets suggests that us investors see many Malaysaan-spectic nsks of investment as diversitatie, not requiring a mak premium Malaysian investors see Malaysian-specific risk as syadermatic and require a isk premium for holding the stock Both A and B None of the above Question 16 4 points Save Answt A US firm is interested in acquiring a Malaysian company in the electronics industry. Suppose Let MS stand for the Malaysian currency, Ringgit Information relevant to the cost-of-capinal the U.S. and Malaysian markels are segmented calculations are as tollows U.S. Mar 0.6 1.00 16% 8.5% The difference in costs of capital in MS between the two segmented markets suggests that us investors see many Malaysaan-spectic nsks of investment as diversitatie, not requiring a mak premium Malaysian investors see Malaysian-specific risk as syadermatic and require a isk premium for holding the stock Both A and B None of the above

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