Questions from Corporate Finance

Q: How is foreign exchange risk sensitivity factored into the capital budgeting analysis

How is foreign exchange risk sensitivity factored into the capital budgeting analysis of a foreign project?

Q: Define “marginal weighted average cost of capital”.

Define “marginal weighted average cost of capital”.

Q: If a multinational firm is able to diversify its sources of cash

If a multinational firm is able to diversify its sources of cash inflow so as to receive those flows from several countries and in several currencies, do you think that tends to increase or decrease i...

Q: Both domestic and international portfolio managers are asset allocators. a

Both domestic and international portfolio managers are asset allocators. a. What is their portfolio management objective? b. What is the main advantage that international portfolio managers have comp...

Q: Many firms in many countries every year borrow at nominal costs which

Many firms in many countries every year borrow at nominal costs which prove to be very different after the fact. For example, not too long ago Deutsche Bank borrowed funds at a nominal cost of 9.59% p...

Q: What is the difference between a self-sustaining foreign subsidiary and

What is the difference between a self-sustaining foreign subsidiary and an integrated foreign subsidiary?

Q: Should foreign subsidiaries of multinational firms conform to the capital structure norms

Should foreign subsidiaries of multinational firms conform to the capital structure norms of the host country, or to the norms of their parent’s country? Discuss.

Q: What is the difference between “internal” financing and “external

What is the difference between “internal” financing and “external” financing for a subsidiary? List three types of internal financing and three types of external financing available to a foreign subsi...

Q: Bank borrowing has long been the manner by which corporations and governments

Bank borrowing has long been the manner by which corporations and governments borrowed funds for short periods. What then, is the advantage over bank borrowing for each of the following? a. Syndicated...

Q: What is the difference between a eurobond and a foreign bond,

What is the difference between a eurobond and a foreign bond, and why do two types of international bonds exist?