The same effective financing rate from borrowing, Financial Management

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The same effective financing rate from borrowing

Assume that the U.S. interest rate is 12% while the interest rate in the U.K. is 6%. If GBP are borrowed by a U.S. firm, the GBP would have to ____ against the dollar by ____% in order to have the same effective financing rate from borrowing dollars.

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Financial Management: The same effective financing rate from borrowing

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