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: $89 million excess cash to be invested (lent) Japan: $68 million funds to be raised (borrowed) The management gathered the following data: 5. Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market; then indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the US$ is %. (Round to two decimal places.) - X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) US $ \ Currency MP MP11.58/US$ -3.05% 108.04/US$ + 1.51% Item Spot exchange rates Forecast percentage change Interest rates Nominal Euromarket Domestic Effective Euromarket Domestic 4.03% 3.78% 6.23% 5.94% 2.04% 2.17% Enter your answer in the answer bal 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: $89 million excess cash to be invested (lent) Japan: $68 million funds to be raised (borrowed) The management gathered the following data: 5. Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market; then indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the US$ is %. (Round to two decimal places.) - X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) US $ \ Currency MP MP11.58/US$ -3.05% 108.04/US$ + 1.51% Item Spot exchange rates Forecast percentage change Interest rates Nominal Euromarket Domestic Effective Euromarket Domestic 4.03% 3.78% 6.23% 5.94% 2.04% 2.17% Enter your answer in the answer bal