Reference no: EM132643434

Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a fir borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected Using the same baselinevalues of a debt principal of SF1.4 million, a one year period, an initial spot rate of SF1.5300/$, a 4.524% cost of debt, and a 38% tax rate, what is the effective after tax cost of debt for one year of US Dollar-based company if the exchange rate at the end of the period was:

a - SF1.5300/$ = _______________% round to four decimal places

b - SF1.4600/$ = _______________% round to four decimal places

c - SF1.3840/$ = _______________% round to four decimal places

d - SF1.6650/$ = _______________% round to four decimal places