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14.31 Suppose the eurois expected to appreciate by 4% annually against the dollar. If a company can borrow dollars at 9.3%, what is the highest

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14.31 Suppose the eurois expected to appreciate by 4% annually against the dollar. If a company can borrow dollars at 9.3%, what is the highest interest rate it should be willin e its expected financing cost? 3)51% b) 4.3% c) 7.2% d) 8.9% Ans: a Section: The cost of equity capital Level: Difficult

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