starbucks opened

Home Insert Page Layout Formulas Data ReviewV View Acrobat le 6 Cut Times New Roma 10A A Merge & Format Painter Clipboard Font Alignment X VStarbucks opened its first store in Zagreb, Croatia in Oc Al Problem 6.5 Starbucks in Croatia Starbucks opened its first store in Zagreb, Croatia in October 2010. The price of a tall vanilla latte in Zagreb is 25.70kn. In New York City, the price of a tall vanilla latte is $2.65. The exchange rate bewteen Croatian kunas (kn) and U.S. dollars is kn5.628S'S. According to purchasing power panity, is the Croatian kuna overvalued or undervalued? Assumptions Spot exchange rate (Kn/S) Price of vanilla latter in Zagreb (kn) Value 56288 25.70 2.65 Price of vanilla latter in NYC (S) Actual price of Croatian latte in USD Implied PPP of Croatian latte in USD Percentage overvaluation (positive) or undervaluation (negative) 4.57 9.70 112.40896