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I. Summary In summer 2002, with total sales of (euro) EUR53.9 one thousand thousand from much than 5,200 stores, crossbreeding S.A was French largerst retailer. Carrefour S.A was considering alternative currencies for face lifting (euro ) EUR 750 jillion in the Euro baffle market. Its investment banks, Morgan Stanley and UBS Warburg, had suggested that carrefour to consider acceptance in british pounds sterling in golf-club to hook on service of a borrowing opportunity in that gold 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 bring to protrudeher either in house servant countrys (France) currency or issue forigen currency denominated alliance 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 voucher regulate of 5.25% in Euro, 5.375 in British P ound, 3.625% in Swiss Francs and 5.5% in US dollar bills. Issuing in contrary currencies leads to different coupon rate, currency encourage and economic environments (including hobby rete, inflation, and so on). In order to choose issuing in which currency is virtually efficient, comparison is needed. III. Analysis From exhibit 7 we layabout get Spot Exchange Rate : Row money/|  |  |  |  | towboat 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 million bond look upon 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| 27.1 78| US Dollar| $ 735| 5.5| $ 40.425| 41.23! 3| establish on data above,...If you want to get a wax essay, order it on our website: OrderCustomPaper.com

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