Considering an investment in japan

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Maryland? Light, a U.S. light? manufacturer, is considering an investment in Japan. The dollar cost of equity for Maryland is 11.00 %. You are in the corporate treasury? department, and you need to know the comparable cost of equity in Japanese yen for a project with free cash flows? (FCFs) that are uncorrelated with spot exchange rates. The? risk-free interest rates on dollars and yen are r$=5.00% and r¥=1.00%?, respectively. Maryland is willing to assume that capital markets are internationally integrated. What is the yen cost of? equity? (Round to three decimal places)

Reference no: EM131472941

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