TropiKana Inc

question 47

Multiple Choice

TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, what is the before tax cost of capital if the firm repays the entire loan plus interest (rounded) ?

• A) 1.73%
• B) 5.50%
• C) 10.50%
• D) 9.27%

Identify the roles and responsibilities of the IT steering committee in aligning IT with business strategy.

Recognize the importance of choosing appropriate development models and the implications of outsourcing.

Comprehend the concept of Shadow IT and its implications for organizational IT governance.

Understand software acquisition strategies and their impacts on organizational IT architecture.

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Definitions:

Competing Business

A company that offers similar products or services as another business within the same market or industry.

Reformation

The legal process of modifying a contract or document to accurately reflect the true intentions of the parties involved.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual contract exists between the parties involved.

Specific Performance

A legal remedy requiring a party to perform a specific act, often the fulfillment of contractual obligations, as opposed to paying damages.