Financing With Foreign Equity. Orlando Co. has its U.S. business funded in dollars with a capital structure of 60% debt and 40% equity. It has its Thailand business funded in Thai baht with a capital structure of 50% debt and 50% equity. The corporate tax rate on U.S. earnings and on Thailand earnings is 30%. The annualized 10-year risk-free interest rate is 6% in the United States and 21% in Thailand. The annual real rate of interest is about 2% in the United States and in Thailand. Interest rate parity exists. Orlando pays 3 percentage points above the risk-free rates when it borrows, so its before-tax cost of debt is 9% in the United States and 24% in Thailand. Orlando expects that the U.S. annual stock market return will be 10% per year, and the Thailand annual stock market return will be 28% per year. Its business in the United States has a beta of .8 relative to the U.S. market, while its business in Thailand has a beta of 1.1 relative to the Thai market. The equity used to support Orlando's Thai business was created from retained earnings by the Thailand subsidiary in previous years. However, Orlando Co. is considering a stock offering in Thailand that is denominated in Thai baht and targeted at Thai investors. Estimate Orlando's cost of equity in Thailand that would result from issuing stock in Thailand. A) 28.70% B) 26.92% C) 24.61% D) 22.89%