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East Asiatie-Thailand. The East Asiatic Company (EAC), a Danish company with subsidiaries throughout Asia, has been funding its Bangkok Subsidiary primarily with U.S. dollar debt

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East Asiatie-Thailand. The East Asiatic Company (EAC), a Danish company with subsidiaries throughout Asia, has been funding its Bangkok Subsidiary primarily with U.S. dollar debt because of the cost and availability of dolla capital as opposed to Thai bah-denominated ( Bebt. The treasurer of EAC Thailand is considering a year bank loan for $251,000. The current spot rate is 132.06/$, and the color based interest is 6.78% for the 1-year period. 1-year loans are 11.97% in batt 2. Aina ospected infulon taton for the coming year of 4.1% and 125% in Thailand and the United States, respectively, according to purchase power perity, what would be the effective cost of funds in b. W EAC's foreign exchange advisers belave strongly that the Thai government wants to push the value of the bent down against the dollar by 8% over the coming year to promote is export competitiveness in dolar markets) what might be the effective cost of funds in batera c. EAC could borrow Thai baht at 13.00% per annum, would this be cheaper than other part a part b? a. Assuming expected inflation rates for the coming year of 4.1% and 1 25% in Thaland and the United States, respectively. cccording to purchase power perity, what would be the effective cost of funds in Thai Lan ti? The Poctive cost of funds, in bahterme, is % (Round to three decimal places) OWE Enter your answer in the answer box and then click Chack Answer 2 parts remaining Clear All C Amer

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