Reference no: EM132460526
The East Asiatic Company (EAC), a Danish company with subsidiaries all over Asia, has been funding its Bangkok subsidiary primarily with U.S. dollar debt because of the cost and availability of dollar capital as opposed to Thai baht-denominated (B) debt. The treasuer of EAC-Thailand is considering a one-year bank loan for $250,000. The current spot rate is B32.06/$, and the dollar-based interest is 6.75% for the one year period. One year loans are 12.00% in baht.
Assumptions Value
Current spot rate, Thai baht/$ 32.06
Expected Thai inflation 4%
Expected dollar inflation 1.830%
Loan principal in U.S. dollars $250,000
Thai baht interest rate, 1-year loan 12.000%
US dollar interest rate, 1-year loan 6.750%
Calculate the effective (implied) cost of funds to the company assuming purchase power parity, one year from now? Answer as a percentage with two decimal places.
How many shares of common stock are outstanding
: How many shares of common stock are outstanding? How many shares of preferred stock are outstanding, What is the preferred dividend as a percent of par
|
Johnson withdrawal agreement
: After 3 years of struggling with Brexit, the UK parliament voted in favour of PM Johnson's withdrawal agreement.
|
How would you describe the factors that determine the tone
: Discussion of how would you describe the factors that determine the tone at the top from an organizational perspective and references 300 words.
|
Discuss about strategic philanthropy and locus of control
: Pick one of the following terms for your research: Strategic philanthropy, locus of control, ethical culture, ethical awareness, or normative approach.
|
Calculate the effective cost of funds to the company
: Calculate the effective (implied) cost of funds to the company assuming purchase power parity, one year from now? Answer as a percentage with two decimal places
|
Strategic business plan and presentation assignment
: Strategic Business Plan & Presentation Assignment Help and Solution, BSB61015 Advanced Diploma of Leadership and Management - Assessment Writing Service
|
Define companies that have been bankrupted by disaster
: Choose one such company and create a brief case study about it. Successful narratives will focus on the manner in which the organization was impacted.
|
What would ppp forecast the future spot rate of baht
: Given this information what would PPP forecast the future spot rate of baht/$? Answer using two decimal places.
|
Dollar inflation and the future exchange rate
: AvtoVAZ OAO, a leading auto manufacturer in Russia, was launching a new automobile model in 2001, and is in the midst of completing a complete pricing analysis
|