5. Grupo Bimbo de Mexico. Grupo Bimbo, although Mexican by incorporation, evaluates all business results, including financing costs, in U.S. dollars. The company needs to borrow $10,000,000 or the foreign currency equivalent for four years. For all issues, interest is payable once per year, at the end of the year. Available alternatives are:

a. Sell Japanese yen bonds at par yielding 3% per annum. The current exchange rate is 106/$, and the yen is expected to strengthen against the dol- lar by 2% per annum.

b. Sell euro-denominated bonds at par yielding 7% per annum. The current exchange rate is $1.1960/, and the euro is expected to weaken against the dollar by 2% per annum.

e. Sell U.S. dollar bonds at par yielding 5% per annum. Which course of action do you recommend Grupo Bimbo take and why? 6. Zermatte Air (Switzerland). Zermatte Air of Switzerland retains $12,000,000 from tickets sold to U.S. dollar holders, after paying fuel and landing costs associated with its frequent flights between Dulles Airport in the United States and Geneva. These funds are currently deposited in Mid-What are the debt and equity proportions in Quatrefoil's consolidated balance sheet? *5. Grupo Bimbo de Mexico. Grupo Bimbo, although Mexican by incorporation, evaluates all business results, including financing costs, in U.S. dollars. The company needs to borrow $10,000,000 or the foreign currency equivalent for four years. For all issues, interest is payable once per year, at the end of the year. Available alternatives are:

a. Sell Japanese yen bonds at par yielding 3% per annum. The current exchange rate is 106/$, and the yen is expected to strengthen against the dol- lar by 2% per annum.

b. Sell euro-denominated bonds at par yielding 7% per annum. The current exchange rate is $1.1960/, and the euro is expected to weaken against the dollar by 2% per annum.

c. Sell U.S. dollar bonds at par yielding 5% per annum. Which course of action do you recommend Grupo Bimbo take and why?