The Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado borrows GBP 5,000,000 for one year at 7.375% interests a. What is the dollar cost of this debt if the pound depreciates from $2.0260/GBP to $ 1.9460/GBP? b. What is the dollar cost of this debt if the pound appreciates from $2.0260/GBP to $ 2.1640/GBP?
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