East Asiatic-Thailand. The East Asiatic Company (EAC), a Danish company with subsidiaries throughout Asia, has been funding its Bangkok Subsidiary primarily with US dollar debt because of the cost and availability of dollar capital as opposed to Thai baht-denominated (B) debt. The treasurer of EAC Thailand is considering a 1-year bank loan for $247,000 The current spot rate is 132 06/5, and the dollar-based interest is 674% for the 1-year period 1 year loans are 12019 in baht a. Assuming expected inflation rates for the coming year of 4 4% and 1 29% in Thailand and the United States, respectively, according to purchase power party what would be the effective cost of funds in the batterms? apl b. It EAC's foreign exchange advisers believe strongly that the Thai government wants to push the value of the baht down against the dollar by 5% over the coming year (o promote its export competitiveness in dollar markets), what might be the effective cost of funds in baht terms? 127 C. IT EAC could borrow Thai baht of 13.00% per annum would this be cheaper than other part a or part b? 10 mline a. Assuming expected inflation rates for the coming year of 4.4% and 120% in Thailand and the United States, respectively, according to purchase power panty what ons would be the effective cost of funds in the bal terms The effective cost of funds, in bant terms, is % Round to throw decimal places) "13) /13)