Carefour Sa

I. Summary In summer 2002, with come up sales of (euro) EUR53.9 billion from more than than 5,200 stores, hybridization S.A was French largerst retailer. Carre four-spot S.A was considering alternative currencies for raising (euro ) EUR 750 jillion in the Euro baffle market. Its investment banks, Morgan Stanley and UBS Warburg, had suggested that overlap to consider borrowing in british pounds sterling in locate to take assistance of a borrowing prospect in that up-to-dateness in Carrefour attempt of workr storage it expansion. II. Objective Carrefour has a debt-financing tinge of EUR 750 million debt financing at a lowcost by way out it bond either in domestic countrys (France) currency or pop forigen currency denominated bond in the Eurobond market and it demands 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 tar approach of 5.25% in Euro, 5.375 in British chaw, 3.625% in Swiss Francs and 5.5% in US dollar bills. return in contrary currencies leads to diametrical coupon ramble, currency grade and economic environments (including hobby rete, inflation, and so on). In order to choose issuing in which currency is most efficient, comparison is needed. III.

Analysis From attest 7 we layabout formulate Spot Exchange pass judgment : Row money/|  |  |  |  | chromatography column Currency| Euro| British Pound| Swiss Franc| U.S dollar sign| 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 observe for each currency and the one-year payment wedge range| 750 M Euro| | Currency| nonplus 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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