Suppose the Domestic Cost of Capital for a U

question 6

Multiple Choice

Suppose the domestic cost of capital for a U.S.-based company is 9%. Also, the U.S. interest rate is 5% and the European interest rate is 5%. What is the foreign denominated cost of capital for the company?

• A) 7%
• B) 8%
• C) 9%
• D) 10%

---

Definitions:

Super

A keyword used in object-oriented programming languages to refer to an object's parent class, often used to access parent class properties or methods.

Superclass

The class from which other classes inherit properties and methods in object-oriented programming.

Shape

In programming, particularly in graphics and design, an entity or object that represents a geometric figure.

Circle

A geometrical shape consisting of all points in a plane that are a certain distance from a given point, the center.