4. Suppose the following conditions prevail: U.S. Germany corporate income tax rate 21% 32% corporate bond yields 4% 3% and the expected rate of euro appreciation against the dollar is 2%/year. From the perspective of a U.S. corporation with a German branch, identify the following costs of debt (in dollar terms):

i)The after-tax cost of dollar debt issued in the U.S.;

ii)The expected after-tax cost of euro debt issued in the U.S.;

iii)The expected after-tax cost of euro debt issued in Frankfurt.