Question
Q4. Suppose that GE and L'Oral S.A. need to issue bonds to finance their new projects. The table below summarizes their costs: Borrow in USD
Q4. Suppose that GE and L'Oral S.A. need to issue bonds to finance their new projects. The table below summarizes their costs:
|
| Borrow in USD | Borrow in EUR |
| GE | 9.42% | 8.27% |
| L'Oral S.A. | 10.11% | 9.17% |
- Which firm has a comparative advantage when borrowing euros? Why?
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Guide To Finance Theory And Application Portfolio Mathematics
Authors: Professional Risk Managers' International Association (PRMIA)
1st Edition
0071731814
