Question: Quantum Co . , a U . S . - based firm, is contemplating a project involving the establishment of a subsidiary in Finland, anticipating

Quantum Co., a U.S.-based firm, is contemplating a project involving the establishment of a subsidiary in Finland, anticipating substantial earnings in Euros. However, the Finnish government's policy dictates the prohibition of all fund transfers, preventing the remittance of earnings to the U.S. parent for a minimum of 10 years. Additionally, the blocked funds are not eligible to earn interest. The Euro is projected to depreciate by 20% annually against the U.S. dollar over the course of time. Quantum Co. plans to secure financing for the subsidiary through borrowing. Which of the following strategies do you recommend?
Choose one the following answer choices:
obtain 50% of needed fund in dollar-denominated loan and the remaining fund in euro-denominated loan
obtain a dollar-denominated loan and convert the loan into euro since the euro is expecting to depreciate
obtain a euro-denominated loan since earnings can not be remitted or earn interest

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