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QUESTION 71 For the next 3 questions suppose the following data holds: TropiKana Inc. has just borrowed euro 1,000,000 for one year at 7.00%
QUESTION 71 For the next 3 questions suppose the following data holds: TropiKana Inc. has just borrowed euro 1,000,000 for one year at 7.00% interest and the Euro depreciates against the dollar from $1.15/euro at the time the loan was made to $1/euro at the end of the first year. How much in dollar will Tropikana have to pay at the end of the year? $1,000,000 $1,070,000 O $1,115,000 O $1,200,000 QUESTION 72 In the above question, what is the rate of change in the value of euro for the year? O -13.04% -11.25% -6.67% -3.33% QUESTION 73 In the above question, what is the dollar cost of this debt? O-10% O -6.96% 3.33% 5.21%
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