Consider the Following Equation: = (1

question 12

Multiple Choice

Consider the following equation: = (1 + ) - 1 the term r¥ in this equation refers to:

• A)the cost of capital for the firm in terms of yen.
• B)the risk-free rate of interest on the dollar.
• C)the cost of capital in terms of dollars.
• D)the risk-free rate of interest on the yen.

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