i) A Ghanaian firm has two sources to borrow to finance its operations. The local course of borrowing at 25 percent per annum or dollar denominated source at 6 percent. The consultant also indicates that the expected possible appreciation or depreciation of the dollar in relation to the cedi is given in the table below. Advise which of the financing sources the Ghanaian firm should borrow from. Possible rate of change in the US dollar the next one year (ef) Probability of occurrence -5% 10% -4% 15% 8% 20% 12% 25% 15% 30% 100%

Answer rating: 100% (QA)

Since Ghanaian firm has two sources to borrow First local course of borrowing at 25 per annum Suppos... View the full answer