Consider the Following Equation

question 16

Multiple Choice

Consider the following equation:
S ×
=
The term
In this equation is:

• A)the appropriate cost of capital from the standpoint of a U.S.investor.
• B)the risk-free rate for a foreign investor.
• C)the risk-free rate for a U.S.investor.
• D)the appropriate cost of capital from the standpoint of a foreign investor.

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