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Casio can issue USD 4 million of debt at an all-in-cost (AIC) of 4.34%, whereas IBM can issue USD 4 million of debt at an
Casio can issue USD 4 million of debt at an all-in-cost (AIC) of 4.34%, whereas IBM can issue USD 4 million of debt at an AIC of 4.87%. If Casio issues Euro-denominated bonds equivalent to USD 4 million, its AIC will be 6.24%, whereas if IBM issues such bonds, its AIC will be 5.32%. What is Casio's EUR to USD borrowing ratio? a. 0.9821 b. 1.0182 c. 1.0043 d. None of the options in this question are correct. e. 0.9957
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