Saudi Aramco is a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. It is one of the largest companies in the world by revenue, and according to accounts seen by Bloomberg News, the most profitable company in the world. Saudi Aramco has both the world's second-largest proven crude oil reserves, at more than 270 billion barrels, and second-largest daily oil production.The company is currently publicly listed in Saudi Arabia.

1. Suppose that Aramco is operating in a segmented capital market. What actions would you recommend to mitigate the negative effects? What are the benefits and costs of the actions?
2. Explain how a firm's cost of capital may decrease after taking these actions.