Expected cost of financing a one-year loan

Reference no: EM13827992

Problem:

Maston Corporation has forecasted the value of the Russian Ruble for the next tear as follows:

OUTCOME

PERCENTAGE CHANGE   PROBABILITY OF
   -5%                                   20%
   -3%                                   50%
    1%                                   30%

If the Russian Ruble borrowing rate is 30%, the expected cost of financing a one-year loan in Rubles would be what?

Additional Information:

The short answer question is from Finance as well as the cost of financing for one year loan in Rubles would be if the Russian Ruble borrowing rate is at 30%. The data pertaining to the computations has been given in the question.

Reference no: EM13827992

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