The formula for foreign cost of capital is CoCFC RFFC RFHC + CoChc. Which of the following statement(s) regarding this formula is (are) correct? This formula states that foreign currency cost of capital can be approximated by the home currency risk premium for the project plus the foreign currency risk-free rate. When valuing an overseas project, we can use the same discount rate to discount foreign currency cash flows and home currency cash flows. This formula applies when markets are internationally segmented. This formula applies when markets are internationally integrated and exchange rate movements are uncorrelated with foreign currency cash flows