Question
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
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?
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
