Like some guidance.
Assuming operating cashflows (payment to suppliers and revenue from customers) are denominated in Indonesian rupiah. But borrowings are made in US dollars (for simplisticity, say borrowing cost in US dollars is 4%). How should I compute my cost of debt and cost of equity in wacc?
Can I compute cost of equity using capm and using Indonesian riskfree rate, etc but cost of debt using the US dollar denominated cost of debt?