The dollar for Javelin Consulting, a Canadian research firm, is 7.5%. The firm faces a tax rate of 30% on all income, no matter where it is earned. Managers in the firm need to know its JPY because they are considering launching a new bond issue in Tokyo to raise money for a new investment there. The risk-free interest rates on CAD and JPY are rCAD = 5% and rJPY = 1%, respectively. Javelin Consulting is willing to assume that capital markets are internationally integrated and that its free cash flows are uncorrelated with the JPY-CAD spot rate. What is Javelin Consulting’s after-tax in JPY?
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com