Question

In: Accounting

Based on case "Carrefour S.A.", answer the following question Pinduoduo (PDD) is trying to issue a...

  1. Based on case "Carrefour S.A.", answer the following question

    Pinduoduo (PDD) is trying to issue a 5-year note. Because it is a Chinese firm listed in the US, it wants to test the eurobond market by considering raising money in USD. The current exchange rate between Chinese RMB to USD is 0.14, i.e. every Chinese RMB can be exchanged to 0.14 USD. The term structure in China and US can be found in the following table for the next 5 years:

    CHN USA
    1 year 1.167% 0.17%
    2 year 1.362% 0.20%
    3 year 1.514% 0.24%
    4 year 1.735% 0.29%
    5 year 1.896% 0.34%

    After some negotiation, Pinduoduo can borrow in RMB at a rate of 3.7% (annual coupon) for 5 years, and 2.2% (annual coupon) in USD. Assuming interest rate parity, should PDD issue in USD or RMB?

Solutions

Expert Solution


Related Solutions

5) “Carrefour S.A. (Euronext: CA) is a French multinational retailer headquartered in Boulogne Billancourt, France, in...
5) “Carrefour S.A. (Euronext: CA) is a French multinational retailer headquartered in Boulogne Billancourt, France, in the Hauts-de-Seine Department near Paris. Carrefour is one of the largest hypermarket chains in the world (with close to 1,600 hypermarkets at the end of 2015), the fourth largest retail group in the world in terms of revenue (after Wal-Mart, Tesco and Costco), and the second in profit (after Wal-Mart). Carrefour operates in more than 30 countries, in Europe, the Americas, Asia and Africa....
Case 3.3 Logitech International S.A Question: from the Logitech international S.A form 10-k analyze the profitability...
Case 3.3 Logitech International S.A Question: from the Logitech international S.A form 10-k analyze the profitability of Logitech
Please read the following short case carefully and provide your answer after analyzing question based on...
Please read the following short case carefully and provide your answer after analyzing question based on the appropriate open market models/diagrams. Case: Offshore Outsourcing and Imports Imagine that you are an economist working for the Congressional Budget Office (CBO). You receive a letter from the chair of the Senate Budget Committee: Dear CBO economist, Congress is about to consider the president’s request to cut our country’s offshore outsourcing by 50 percent and imports of durable goods by 40 percent. Before...
Please read the following short case carefully and provide your answer after analyzing question based on...
Please read the following short case carefully and provide your answer after analyzing question based on the appropriate open market models/diagrams. Case: Currency Devaluation and Capital Flight You work for Dr.Zhang, the autocratic dictator of the Republic of Zhouland. After taking an economics course, you decide that devaluing your currency (Zhoullars) is the way to increase GDP. Following your advice, DR.Zhang orders massive increases in the supply of Zhoullars, which reduces the value of Zhoullars in world markets. Use the...
Hello, Please follow and answer the requirement on these question based on the case company which...
Hello, Please follow and answer the requirement on these question based on the case company which is Samsung. a) What is the organizational structure for Samsung Company (centralized or decentralized)? specific case information. (250 words)
"The Terri Schiavo Case." Based on your analysis of the case, answer the following questions: What...
"The Terri Schiavo Case." Based on your analysis of the case, answer the following questions: What are the major ethical issues involved in the case? Do you agree or disagree with the outcome of the case? Why or why not? Who should be eligible to legally make healthcare decisions to save or end life in the absence of an advanced directive? Why or why not? What should be the considerations when making a decision to discontinue life support? How can...
Answer the following questions related to the Enron case What, if any, ethical issue is involved...
Answer the following questions related to the Enron case What, if any, ethical issue is involved in this case? 2. If you were in the position of Jeffrey Skilling in Enron, knowing what was happening in your company, what position you will adopt: I will do anything, since I am not responsible for other one’s job. I will try to help the accountants to correct the accounting records before anyone notice. I will try to pursue the accountants to correct...
based on "Consumer-Driven Health Care: Medtronic’s Health Insurance case study", please answer the following question. Thanks...
based on "Consumer-Driven Health Care: Medtronic’s Health Insurance case study", please answer the following question. Thanks Consumer-Driven Health Care: Medtronic’s Health Insurance Options In June, Dave Ness, vice president of Compensation and Benefits of Minneapolis-based Medtronic, was wrestling with the decision about the health care insurance choices he should offer employees next year. He had launched Definity Health, a new program, two years ago, on an experimental basis. Definity Health, also Minnesota-based, was founded to offer a new kind of...
Based on the following case study answer two of the questions a. Dell is a pioneer...
Based on the following case study answer two of the questions a. Dell is a pioneer in stimulating exchanges with customers through social media. With reference to Dell, discuss the differences between e-marketing and traditional marketing activities. b. As more companies are moving towards green businesses, should Dell adopt a similar strategy to market its products? Justify your answer Dell Direct and Not-So-Direct Case Study: When Michael Dell started his Texas-based computer business in 1984, he chose a distribution strategy...
QUESTION 4 CASE STUDY Read the following case study and then answer the questions. A market...
QUESTION 4 CASE STUDY Read the following case study and then answer the questions. A market darling falls to Earth: The EOH Meltdown Background EOH was listed on the JSE in 1997. Over the next twenty years it grew to one of the largest technology businesses on the African continent. By 2017 it operated in 36 countries in Africa and internationally. It had grown its annual turnover to R15,4 bn rand and was generally viewed as a highly successful company....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT