Alice's is a US based manufacturer that is expanding to Malaysia.Alice's can either borrow from a Malaysian

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Alice's is a US based manufacturer that is expanding to Malaysia.Alice's can either borrow from a Malaysian bank at 10.65% (in MYR) or from a US bank at 6.40%.The spot rate is USD 0.3360 = MYR 1.The one-year forward rate is USD 0.3215 = MYR 1.If Alice's wants the lowest cost (interest rate in USD terms) loan for their US based shareholders, which loan should Alice's take?

Posted Date: Jun 08, 2024 05:01 AM

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Alice's is a US based manufacturer that is expanding to Malaysia.Alice's can either borrow from a Malaysian

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