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Grupo Modelo S.A.B. de C.V. Grupo Modelo, a brewery out of Mexico that exports such well-known varietes as Corons, Modelo, and Pacilco, is Merican by

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Grupo Modelo S.A.B. de C.V. Grupo Modelo, a brewery out of Mexico that exports such well-known varietes as Corons, Modelo, and Pacilco, is Merican by inoorporaton. However, the compa evaluates all business results, including financing costs, in U.S. dollars. The corrpany needs to borrow $15,000,000 or the foreign curnency equivalent for four years. For all issues, interest is paya once per year, at the ond of the year. Avalable altematives are as follows: a. Sell Japanese yen bonds at par yeiding 3.40% per annum. The current exchange rate is 2105.0015, and the yen is expected to stwengher against the dollar by 23% per annum. What is the effective cont of the yen-denominated loan for Grupo Modelo? b. Sell euro-denominated bonds at par yielding 6.50% per asnum. The curent exchange rate is 51.1910, and the euro is expected to weaken against the dollar by 2.4% per arnum. What is the ettective cost of the euro-denominated loan for Grupo Modelo? c. Sel U.S. dolar bonds at par ylelding 5.50% per annum. What is the effective cost of the dollar-denominated loan for Grupo Modwio? d. Which course of action do you recommend Grupe Modelo take and why? a. Complele the following table to calculate the dollar cost of the yen-denominated debt for yeass 0 through 4 . Enter a positive number for a cash inflow and a negative number for a cash outfow. (Riound the amount to the neacest whole number and the exchamge rate to two decimal ploces) What is the efiective cost of the yen-denominated han tor Grupo Moselo? (Round to two decimal places) (Round the amount to the nearest whiche number and be ewchange rete io fosit decimal places)

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