A US company borrows Japanese yen for 1 year at 8 percent. During the year, the yen

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A US company borrows Japanese yen for 1 year at 8 percent. During the year, the yen appreciates 10 percent relative to the dollar. The US tax rate is 50 percent. What is the after-tax cost of this debt in US dollar terms?

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Global Corporate Finance Text And Cases

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Authors: Suk H. Kim, Seung H. Kim

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Question Posted: May 23, 2024 02:01 AM

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A US company borrows Japanese yen for 1 year at 8 percent. During the year, the yen

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Global Corporate Finance Text And Cases

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