Suppose firm abc has access to fixed rate 8 and floating, Ask an Expert

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Suppose firm ABC has access to fixed rate 8%, and floating rate LIBOR + .5%, while XYZ had access to fixed rate 10% and floating rate LIBOR + 1.5%. For these two firms:

A. Only XYZ has a comparative advantage in the floating rate

B. ABC has a comparative advantage in both fixed and floating rates

C. Only ABC has a comparative advantage in floating rates

D. ABC has a comparative advantage in fixed while XYZ has a comparative advantage in floating rates

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92415317

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