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Marcus Inc. is a US-based consumer product company that is considering expanding into Southeast Asia, expecting to get 60% of its revenues in Indonesia and

Marcus Inc. is a US-based consumer product company that is considering expanding into Southeast Asia, expecting to get 60% of its revenues in Indonesia and 40% in Vietnam. You have collected the following information on the two countries: Indonesia Vietnam 6.5% O 6% 9.75% 15.49% 10-year Govt Bond Rate (in local currency) 8.50% (Dong) 4 The US treasury bond rate is 3%, the US equity risk premium is 6% and Marcus has a beta of 1.20. What is equity risk premium in Indonesia for Marcus Inc., a US-based consumer product company? 14 406 6.50% (Rupiah) Sovereign CDS Spread 2.50% (Equity)/ (Govt Bond) 4.50% 1.5 1.2

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