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I. Summary In summer 2002, with total sales of (euro) EUR53.9 meg from much than 5,200 stores, convergence S.A was French largerst retailer. Carrefour S.A was considering alternative currencies for ski lift (euro ) EUR 750 jillion in the Euro baffle market. Its investment banks, Morgan Stanley and UBS Warburg, had suggested that carrefour to consider gene outrank in british pounds sterling in dress to publication service of a borrowing opportunity in that silver 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 cohere either in national countrys (France) silver or issue forigen currency denominated splice 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 verifier rate of 5.25% in Euro, 5.375 in British Pound, 3.625% in Swiss Francs and 5.5% in US dollar bills. Issuing in contrary currencies leads to different coupon rate, currency cling to and economic environments (including hobby rete, inflation, and so on). In order to choose issuing in which currency is just about efficient, comparison is needed. III.

Analysis From exhibit 7 we layabout get Spot Exchange Rate : Row money/|  |  |  |  | tower Currency| Euro| British Pound| Swiss Franc| U.S dollar bill| 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 million bond look o n for each currency and the annual 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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