Worcester Tool Company is a large, U.S.-based, multinational corporation with subsidiaries in eight different countries. The parent
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Question:
a. Explain the various ways in which Citigroup could facilitate Worcester’s flow of funds, and identify the type of financial market where that flow of funds occurs. For each type of financing transaction, specify whether Citigroup would serve as the creditor or would simply facilitate the flow of funds to the firm.
b. Recently, the British subsidiary called on Citigroup for a medium-term loan and was offered the following alternatives. Discuss which is the best financing alternative.
LOAN DENOMINATED IN ANNUALIZED RATE
British pounds 13%
U.S. dollars 11%
Canadian dollars 10%
Japanese yen 8%
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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