Given the data provided in this example would you recommend


If the northern branch and the southern branch worked together, the northern branch could loan its £15 million to the southern branch. Nevertheless, one could argue that the branches could not take advantage of interest rate differentials or expected exchange rate effects among currencies. Given the data provided in this example, would you recommend that the two branches make their short-term investment or financing decisions independently, or should the northern branch lend its excess cash to the southern branch? Explain.

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Corporate Finance: Given the data provided in this example would you recommend
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