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HW Score: 0%, 0 of 32 pts Problem 6-18 (algorithmic) Question Helo East Asiatic-Thailand. The East Asiatic Company (EAC) a Danish company with subsidiaries froughout

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HW Score: 0%, 0 of 32 pts Problem 6-18 (algorithmic) Question Helo East Asiatic-Thailand. The East Asiatic Company (EAC) a Danish company with subsidiaries froughout Asia, has been funding Bangkok Subsidiary ormanly with US dollar det ofte could way of doar capital soted to Thai baht denominated (6) debt. The treasurer of EAC Thailand is considering a 1year bank loan for $247.000. The current strate is 132.00/5, and the color based in 0.70% for the year period 1 year loon wo 12.01% in baht Assuming expected inflation rates for the coming year of 45 and 1.24% in Thailand and the United States respectively, according to purchase power party. What would be the offective contattards in Thai baltum? ACN foreign exchange advisers believe strongly that the Thai government wants to push the value of the bat down against the dolar by over the coming year to promote sport competitiveness indoor markets, what might be the effective cost of funds in attorms? c. If EAC could borrow Thai baht at 13.00% per annum, would this be cheaper than other part a or part b? 4 of 8 (0 complete HW Score: 0.0 of 32 pts Scores of a pts Problem 6-18 (algorithmic) Question Help East Asiatic-Thalland. The East Asiatic Company (EAC) a Danish company with subsidiaries throughout Asia, has been funding its Bangkok Subsidiary primarly with US dollar debit because of cout and ability of color capital as opposed to Thai baht denominated (B) debt. The treasure of EAC Thailand is considering a t-year bank loan for $347.000. The current spot rate is B3200, and the car based intors 6.76% for the year period. 1 year loans 12.01% in baht a. Auming expected inflation rates for the coming year of 45 and 1 24% in Thailand and the United States, respectively, according to purchase power party what would be the effective cost of funds in Thabat? 6. EAC's foreign exchange advisers believe strongly that the Thai government wants to push the value of the ball down against the dollar by 5% over the coming you to promote its export comuns in dollar markets) what might be the effective cost of funds in batter? c. It EAC could borrow Thai baht at 13.00% per annum would this be cheaper than other parta or part b

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