Ford can borrow dollars at 12% or Swiss francs at 80% for l year. The peso:dollar exchange rate is expected to move from $1 Fr 1.24 currently to $1 = Fr 1.25 by year's end. (15.10)\

a. What is the expected after-tax dollar cost of borrowing dollars for one year if the Swiss corporate tax rate is 35%?

b. What is Ford's expected after-tax dollar cost of borrowing Swiss francs for one year?

c. At what exchange rate will the after tax Swiss franc cost of borrowing dollars equal the after-tax Swiss franc cost of borrowing francs?