12. Interaction between Financing and Invoicing Policies. Assume that Hurricane, Inc., is a U.S. company that exports products to the United King- dom, invoiced in dollars. It also exports products to Denmark, invoiced in dollars. It currently has
no cash outﬂows in foreign currencies, and it plans to issue bonds in the near future. Hurricane could likely issue bonds at par value in (1) dollars with a coupon rate of 12 percent, (2) Danish kroner with a coupon rate of 9 percent, or (3) pounds with a cou- pon rate of 15 percent. It expects the kroner and pound to strengthen over time. How could Hur- ricane revise its invoicing policy and make its bond denomination decision to achieve low ﬁnancing costs without excessive exposure to exchange rate ﬂuctuations?