please answer these two questions!!! and have details! Thank you!

The following information is available for a firm in a developing country: Risk-free rate = 2.0% Firm's equity beta = 1.5 Equity risk premium in the U.S. = 3.0% Developing country default spread = 4.0% The firm's cost of equity (in USD) using the CAPM approach, based on unadjusted beta, is closest to: Select one: O A. 6.5% O B. 10.5% O C. 8.0% An analyst wants to account for financial distress and market-capitalization as well as market risk in his cost of equity estimate for a particular traded company. Which of the following models is most appropriate for achieving that objective? Select one: O A. A macroeconomic factor model O B. The Fama-French model O C. The capital asset pricing model (CAPM)