REQUIREMENT Amanah (M) Berhad has been operating in Germany and plans to finance its plant expansion by borrowing in either RM or with maturity of…

a)  What is the before-tax Ringgit cost of € loan?

b)  Based on the after-tax Ringgit cost, suggest in which currency would the company borrow?

c) At what exchange rate would the company be indifferent between borrowing in Malaysia or Germany?