Multinational firm with sales in australia and inputs

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An Australian company needs to borrow A$100 million for a period of five years. It can issue ausi debt at 6 percent or yen debt at 4 percent.

a) Suppose the company is a multinational firm with sales in Australia and inputs purchased in Japan. How should this affect its financing choice?

b) Suppose the company is a multinational firm with sales in Japan and inputs that are primarily in ausi. How should this affect its financing choice?

Reference no: EM132473769

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