Samsung can issue USD12 million of debt at an all-in-cost (AIC) of 3.22%, whereas Dell can issue USD12 million of debt at an AIC of 4.76%. If Samsung issues Euro-denominated bonds equivalent to USD12 million, its AIC will be 5.12%, whereas if Dell issues such bonds, its AIC will be 6.40%. What is Dell’s USD to EUR borrowing ratio?

Answer rating: 100% (QA)

To find Dells USD to EUR borrowing ratio we need to compare the allincost AIC of Dells USD ... View the full answer