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To Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a long-term loan agreement several years ago. The companys new CFO believes, however, that

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To Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a long-term loan agreement several years ago. The companys 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) 2010 Annual yen payments on debt agreement) Average exchange rate, WHKS Annual yen debt service, HKS 2011 D 11,100,000 12.25 11,100,000 11.83 2012 11,100,000 1136 end 2011 Calculate the necessary variables for the analysis below (Round to the nearest Integer) Analysis of Japanese yen Denominated Debt 2010 2012 Annual yen payments on debt agreement ( 11,100,000 11,100,000 11,100 000 Average exchange rate, HKS 1225 1183 11.36 Annual yen debt service, HKS C E What do you think? (Select from the drop-down menus) pte The analysis of debt service payments on the Japanese yen denominated long-term loan indicates that for the past two years the effective cost of repaying the loan in Hong Kong dollars, has been steadily as the Hong Kong dollar has in value against the Japanese yen In fact, the Japanese yen debt proven to be as cheap as thought west ents

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