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Lantau Beer (B): Japanese Yen Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a long-term loan agreement several years ago. The company's new
Lantau Beer (B): Japanese Yen Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a long-term loan agreement several years ago. The company's new CFO believes, however, that what was originally thought to have been relatively "cheap debt" is no longer true. What do you think?(Click on the icon to import the table into a spreadsheet.)
Calculate the necessary variables for the analysis below:(Round to the nearest integer.)
2010 | 2011 | 2012 | |
Annual yen payments on debt agreement () | 12200000 | 12200000 | 12200000 |
Average exchange rate, /HK$ | 12.51 | 12.45 | 11.02 |
Annual yen debt service, HK$ |
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