Assignment:
Q1. The CFO of Eastman Kodak is thinking of borrowing Japanese yen because of its low interest rate, currently at 4.5%. The current interest rate on U.S. dollars is 9%. What is your advice to the CFO?
Q2. Rohm & Haas, a Philadelphia-based specialty chemicals company, traditionally finances its Brazilian operations from outside that country because it is ‘‘too expensive’’ to borrow local currency in Brazil. Brazilian interest rates vary from 50% to more than 100%. Rohm & Haas is now thinking of switching to Brazilian real financing because of a pending real devaluation. Assess Rohm & Haas’s financing strategy.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.