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Perth International anticipates a 4.84 per cent increase in the year-one income of its subsidiaries...

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Finance

Perth International anticipates a 4.84 per cent increase in the year-one income of its subsidiaries in year-two. It has information that the current 5.2 per cent, 8.97 per cent, 13.74 per cent and 11.33 per cent nominal interest rate in Australia, China, India and Malaysia, respectively, will remain the same in the next three years. Due to foreign currency higher nominal interest rate, subsidiaries will invest 25 per cent, 53 per cent and 36 per cent of their year-two earnings in China, India and Malaysia, respectively, for next year. Subsidiaries will remit their remaining incomes (i.e., after investment) to the Australian parent. Perth International believes in the Purchasing Power Parity with considering a 2.32 per cent real interest in Australia

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