Use the information to answer the following Questions 4-5. Padini of Malaysia is revisiting its cost of equity analysis in 2020. As a result of extraordinary actions by the Malaysian Central Bank, the Malaysian bond index yield (10-year maturity) has dropped to a record low of 0.22%. The Malaysian equity markets have been averaging 5.40% returns, while the Financial Times global equity market returns, indexed back to Malaysia, is at 5.80%. Padini's corporate treasury staff has estimated the company's domestic beta at 1.20, but its global beta (against the larger global equity market portfolio) at 1.10.

What is Padini's cost of equity based on the domestic portfolio of a Malaysian investor?

A)6.138% B)6.216% C) 6.358% D)6.436%