Question: Post explanation please!! Question 2 4 A U.S. firm is interested in acquiring a Malaysian company in the electronics industry. Suppose the U.S. and Malaysian

 Post explanation please!! Question 2 4 A U.S. firm is interested

Post explanation please!!

Question 2 4 A U.S. firm is interested in acquiring a Malaysian company in the electronics industry. Suppose the U.S. and Malaysian markets are segmented. Let MS stand for the Malaysian currency, Ringgit. Information relevant to the cost-of-capital calculations are as follows: US. Market (5) |Malaysian Market (MS) 0.6 1 1 5% 7% 1.00 16% 8.5% nr Assume UIP holds. What is the cost of capital in Us$ to Malaysian investors? 12.3% 16.2% 14.5% 15.4%

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