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Please solve asap! Thx!! :)) Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP)
Please solve asap! Thx!! :))
Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen, \#). Forecasts of business operations indicate the following short term financing position for each subsidiary (in equivalent U.S. dollars): Mexico: $81 million excess cash to be invested (lent) Japan: $65 million funds to be raised (borrowed) The management gathered the following data: Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market; then indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the USs is \%. (Round to two decimal places.) Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Step by Step Solution
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