The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.4 ?million, a? one-year period, an initial spot rate of SF1.4800?/$, a 4.569% cost of? debt, and a 40?% tax? rate, what is the effective? after-tax cost of debt for one year for a U.S.? dollar-based company if the exchange rate at the end of the period? was:

a.SF1.4800?/$

b. SF1.4400?/$

c. SF1.3640?/$

d. SF1.5930?/$