Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen, V). Forecasts of business operations indicate the following short-term financing position for each subsidiary (in equivalent U.S. dollars): Mexico: $86 million excess cash to be invested (lent) Japan: $66 million funds to be raised (borrowed) The management gathered the following data: B. Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market; then indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the US$ is %. (Round to two decimal places.) Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen, ). Forecasts of business operations indicate the following short-term financing position for each subsidiary (in equivalent U.S. dollars): Mexico: $86 million exc i Data Table X Japan: $66 million funds d the domestic market; then The management gathered indicate where the funds she any other subsidiary.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) be the domestic market of The effective interest rate in US $ Currency MP MP11.57/US$ -3.05% 108.63/US$ + 1.45% Item Spot exchange rates Forecast percentage change Interest rates Nominal Euromarket Domestic Effective Euromarket 3.98% 3.79% 6.23% 5.91% 1.96% 2.11% Domestic Print Done