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I. Summary In summer 2002, with total sales of (euro) EUR53.9 gazillion from much than 5,200 stores, intersection point S.A was French largerst retailer. Carrefour S.A was considering alternative currencies for top (euro ) EUR 750 jillion in the Euro baffle market. Its investment banks, Morgan Stanley and UBS Warburg, had suggested that carrefour to consider espousal in british pounds sterling in magnitude to believe service of a borrowing opportunity in that bills in Carrefour attempt of fund it expansion. II. Objective Carrefour has a debt-financing exigency of EUR 750 million debt financing at a lowcost by issuing it oblige either in domesticated countrys (France) funds or issue forigen currency denominated draw in the Eurobond market and it chooses to issue a 10-year bond to finance the need. in that respect are four choices of bond market, would be priced at a coupon place of 5.25% in Euro, 5.375 in British Pound, 3.625% in Swiss Francs and 5.5% in U S dollar bills. Issuing in contrary currencies leads to different coupon rate, currency nurse and economic environments (including hobby rete, inflation, and so on). In order to choose issuing in which currency is more or less efficient, comparison is needed. III.

Analysis From exhibit 7 we layabout startle Spot Exchange Rate : Row money/|  |  |  |  | editorial Currency| Euro| British Pound| Swiss Franc| U.S dollar| Euro| 1| 1.593| 0.688| 1.02| British Pound| 0.628| 1| 0.432| 0.64| Swiss Franc| 1.453| 2.315| 1| 1.482| U.S Dollar| 0.98| 1.562| 0.675| 1| So, we can compute 750 mill ion bond foster for each currency and the a! nnual payment wedge value| 750 M Euro| | Currency| Bond value (in M)| voucher rate (in %)| Annual payment (in M)| Annual payment (in M €)| Euro| € 750| 5.25| € 39.375| 39.375| British Pound| £ 471| 5.375| £ 15.898| 40.328| Swiss Franc| SF 1089.75| 3.625| SF 57.398| 27.178| US Dollar| $ 735| 5.5| $ 40.425| 41.233| establish on data above,...If you want to get a wax essay, order it on our website: OrderCustomPaper.com

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