Question: Compania Troquelados ARDA is a medium sized Mexico City auto parts
Compania Troquelados ARDA is a medium-sized Mexico City auto parts maker. It is trying to decide whether to borrow dollars at 9% or Mexican pesos at 75%. What advice would you give it? What information would you need before you gave the advice?
Relevant QuestionsBoeing Commercial Airplane Company manufactures all its planes in the United States and prices them in dollars, even the 50% of its sales destined for overseas markets.What financing strategy would you recommend for Boeing? ...IBM is considering having its German affiliate issue a 10 year, $100 million bond denominated in euros and priced to yield 7.5%. Alternatively, IBM's German unit can issue a dollar-denominated bond of the same size and ...Suppose that Mexican bonds are yielding more than 100% annually. Does this high yield make them suitable for American investors looking to raise the return on their portfolios? Explain.Suppose that the dollar is now worth €1.1372. If one-year German bunds are yielding 9.8% and one-year U.S. Treasury bonds are yielding 6.5%, at what end-of-year exchange rate will the dollar returns on the two bonds be ...Time Warner is trying to decide whether to license foreign companies to produce its films and records or to set up foreign sales affiliates to sell its products directly.What factors might determine whether it expands abroad ...
Post your question