Question
please answer the question quickly e. LVMH financed the Tiffany acquisition with new bond issuance. Discuss all potential financing choices that are available to LVMH,
please answer the question quickly
e. LVMH financed the Tiffany acquisition with new bond issuance. Discuss all potential financing choices that are available to LVMH, and why it did not choose other alternative financing methods. (7 marks)
f. After reading through this case, you and your friend, Zac, are impressed by LVMHs growth strategy and optimistic about the company and the luxury industrys growth in the future.
(i) Zac, who lives in the U.S., would like to invest in LVMHs shares. Describe the entire process to Zac, be sure to identify all the market participants involved in the process and what takes place at each step. (7 marks)
(ii) If you want to invest in LVMHs shares from your home market, and your home market is not in France nor the U.S.. What option is available to you? (1 mark)
g. Comment on the prices of MC.PA and LVMUY in the context of the Law of One Price. Be sure to specify how you expect the two prices to behave, provide calculations. (5 marks)
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