1) The risk-adjusted cost of capital is the cost of capital appropriate for a given project, given the riskiness of that project. The greater the project's risk, the higher its cost of capital. True or false?
2) A foreign bond is a type of international bond issued in the domestic capital market of the country in whose currency the bond is denominated, and underwritten by investment banks from the same country. The borrower is headquartered in a different country. True or false?
3) A Eurodollar is a U.S. dollar deposited anywhere in the world—including the U.S. True or false?
4) A good strategy for a U.S. firm's management would be to borrow in countries with the lowest interest rates—particularly if that country maintains lower inflation rates than that of the United States. True or false?