International finance

Pissarides provide the additional financing? Explain. 7. Krugman Company of the United States is considering purchasing Hurwicz Corp in Italy. Maskin Corp. of Japan is also considering purchasing Hurwicz Corp. Both Krugman and Maskin expect Hurwicz to generate cash flows of E600,000 per year for each of the next five years. Both firms expect the euro to remain fairly stable against the U.S. dollar for each of the next five years. The risk free interest rate is 12% in the United States, 8% in Europe, and 10% in Japan. Which potential acquirer will be willing to pay the most for Hurwicz? Why