Post explanation please!

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 M$ stand for the Malaysian currency, Ringgit. Information relevant to the cost-of-capital calculations are as follows: U.S. Market (S) Malaysian Market (MS) 0.6 115% 7% 1.00 16% 8.5% ni Assume Uncovered Interest Parity (UIP) holds. What is the cost of capital in MS to US investors? @ 12.3% 16.2% 13.1% @ 15.4%