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One year ago the spot rate of U.S. dollars for Canadian dollars was $1.2/C$1. Since that time the interest rate in the U.S. has been
- One year ago the spot rate of U.S. dollars for Canadian dollars was $1.2/C$1. Since that time the interest rate in the U.S. has been 4% greater than that in Canada. What is the current spot exchange rate of U.S. dollars for Canadian dollars?
- If the covered interest parity holds, the spot rate of U.S. dollars for Canadian dollars was $1.05/C$1. Since that time the interest rate in the U.S. has been 6% greater than that in Canada. then what is the forward exchange rate?
- Company estimates that its beta is 2.25. The capital structure is 75% debt and 25% equity. Before tax cost of debt is 10 % and tax rate is 20%. Risk free rate is rRF = 6% and market risk premium (rm - rRF ) = 8%: What is the WACC of the company?
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Accounting Information For Business Decisions
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons
2nd Edition
9780170253703
