A U$.$S$.$ firm is interested in acquiring a Malaysian company in the electronics industry. Suppose the U$.$S$.$ and I markets are segmented. Let M$ stand for the Malaysian currency, Ringgit. Information relevant to the cost$-$of$-$capital calculations are as follows:

$\backslash$table$[[,$U$.$S$.$ Market $($$$),$Malaysian Market $($M$$)],[,0\mathrm{.}70,1\mathrm{.}02],[r_M,14\mathrm{.}5\%,16\%$