Carrefour

1142 Words5 Pages
I. BACKGROUND Carrefour has first introduced the concept of hypermarket in the small French town of Sainte-Genevieve-des-Bois in 1963. It is an all in one shopping store that combines the supermarket, drugstore, discount store, and gas station. In the retail industry, where the competition is tough, it is only normal to see mergers and acquisitions between big companies and small-time businesses. The most notable mergers are with Euromarche and Montlaur in 1991. After three years, the company expanded rapidly in France. The first store outside France was in Belgium and Brazil in 1969 and 1975. And as time goes by, they also expanded in Asia and Latin America through acquisition and merger. Carrefour was the largest retailer in…show more content…
The coupon rates for each country as given in the problems are: IV. ACAS (Alternative Course of Actions) Carrefour has four options to choose from and they are: 1) Bond in Pounds The first option is choosing the currency of pounds. The cost in euros is EUR1,133 million. This amount was computed by first converting the EUR750 million into pounds. When the principal amount was converted, this will be used to get the payment for each year. The last year which is year 10, the payment for that year will be added to the principal to get 496 million pounds. This amount will be converted into euros to get the total cost of the bond. 2) Bond in Swiss Franc The second option is choosing the currency of swiss franc. The cost in euros is EUR1,153 million. This amount was computed by first converting the EUR750 million into swiss franc. When the principal amount was converted, this will be used to get the payment for each year. The last year which is year 10, the payment for that year will be added to the principal to get 1,130 million swiss franc. This amount will be converted into euros to get the total cost of the bond. 3) Bond in U.S. Dollar The third option is choosing the currency of U.S. dollars. The cost in euros is EUR1,132 million. This amount was computed by first converting the EUR750 million into U.S. dollars. When the principal amount was converted, this will be used
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