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Question 3 (1 point) Assume the following information for Fasco Co., a U.S.-based MNC that is considering obtaining funding for a project in Germany: U.S.

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Question 3 (1 point) Assume the following information for Fasco Co., a U.S.-based MNC that is considering obtaining funding for a project in Germany: U.S. risk-free rate = .04 German risk-free rate = .05 Risk premium on dollar-denominated debt provided by U.S. creditors = 0.02 Risk premium on euro-denominated debt provided by German creditors = .04 Beta of project = 1.2 Expected U.S. market return = .10 U.S. corporate tax rate = 0.22 German corporate tax rate = .40

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