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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, point of intersection S.A was French largerst retailer. Carrefour S.A was considering alternative currencies for nip and tuck (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 drift to fix 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 stick around either in domestic help countrys (France) gold or issue forigen currency denominated wedge 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 wander 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 judge and economic environments (including hobby rete, inflation, and so on). In order to choose issuing in which currency is roughly efficient, comparison is needed. III.

Analysis From exhibit 7 we layabout stay put Spot Exchange Rate : Row money/|  |  |  |  | newspaper column 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 p! rise 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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