ThaiTenSport (B). ThaiTenSport could also buy export credit insurance from Export-Import Bank of Thailand for 2% premium.
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ThaiTenSport (B). ThaiTenSport could also buy export credit insurance from Export-Import Bank of Thailand for 2% premium. It finances the £2,000,000 receivable from CairoPro from its credit line at 5%
per annum interest. No compensating bank balance would be required.
a. What is ThaiTenSport’s annualized percentage allin cost of financing?
b. What are CairoPro’s costs?
c. What are the advantages and disadvantages of this alternative compared to the bankers’ acceptance financing in Problem 9? Which alternative would you recommend?
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Related Book For
Multinational Business Finance
ISBN: 9781292097879
14th Global Edition
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
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