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Casio can issue USD4 million of debt at an all-in-cost (AIC) of 4.34%, whereas IBM can issue USD4million of debt at an AIC of 4.87%.
Casio can issue USD4 million of debt at an all-in-cost (AIC) of 4.34%, whereas IBM can issue USD4million of debt at an AIC of 4.87%. If Casio issues Euro-denominated bonds equivalent to USD4 million, its AIC will be 6.24%, whereas if IBM issues such bonds, its AIC will be 5.32%. What is Casios EUR to USD borrowing ratio?
(A): 1.0182
(B): 1.0043
(C): 0.9957
(D): 0.9821
(E): None of the options in this question are correct.
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