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  3. Study Set
    Multinational Business Finance
  4. Exam
    Exam 14: Funding the Multinational Firm
  5. Question
    When a Firm Borrows in a Foreign Currency, the Effective
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When a Firm Borrows in a Foreign Currency, the Effective

Question 4

Question 4

True/False

When a firm borrows in a foreign currency, the effective cost is the foreign interest rate plus an adjustment for changes in the exchange rate.

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