Suppose that covered after tax lending and borrowing rates for three units of Eastman Kodak located in

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Suppose that covered after tax lending and borrowing rates for three units of Eastman Kodak  located in the U.S., France, and Germany  are:United States France Germany Lending (%) 3.1 3.0 3.2 Borrowing 3.9 4.2 4.4

a. What is Kodak’s optimal leading and lagging strategy?

b. What is the net profit impact of these adjustments?

c. How would Kodak’s optimal strategy and associated benefits change if the U.S. parent has excess cash available?

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