2. Assume that you conduct business in Argentina, Brazil, and Canada. You consider expanding your business overseas. You want to estimate the an- nual cost of equity in these countries in case you decide to obtain equity funding there. Go to http:// ﬁnance.yahoo.com/intlindices?e=americas and click on index MERV (which represents the Argen- tina stock market index). Click on 1y just below the chart provided. Then scroll down and click on His- torical Prices. Obtain the stock market index value 8 years ago, 7 years ago, . . . , 1 year ago, and as of today. Insert the data on an electronic spreadsheet. Use the mean annual return (percentage change in value) over the last 8 years as a rough estimate of your cost of equity in each of these countries.
Then start over and repeat the process for Bra- zil (click on the index BVSP). Then start over and repeat the process for Canada (click on the index GSPTSE). Which country has the lowest estimated cost of equity? Which country has the highest esti- mated cost of equity?