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Suppose the domestic cost of capital for U.S.- based company is 8%. Also, the U.S. interest rate is 4% and the European interest rate is

Suppose the domestic cost of capital for U.S.- based company is 8%. Also, the U.S. interest rate is 4% and the European interest rate is 7%. What is the foreign denominated cost of capital for the company?

A) 11.12% B) 9.58% C) 10.98% D) 10.51%

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