Happy Company wants to increase $2 million with debt financing. The funds are wanted to finance working capital and the firm will repay them with interest in one year. Happy Company's bursar is considering three options-
(a) Borrowing U.S. dollars after Security Pacific Bank at 8 percent.
(b) Borrowing British pounds since Midland Bank at 14 percent.
(c) Borrowing Japanese yen from Sanwa Bank at 5 percent.