Questions from Corporate Finance

Q: What is hedging?

What is hedging?

Q: Why is the repatriation of cash flows from an overseas project considered

Why is the repatriation of cash flows from an overseas project considered critical to the project’s value?

Q: What difficulties do firms face in estimating cash flows from an overseas

What difficulties do firms face in estimating cash flows from an overseas project?

Q: What is the difference between foreign bonds and Eurobonds?

What is the difference between foreign bonds and Eurobonds?

Q: Which currency is the preferred currency of exchange in global financial markets

Which currency is the preferred currency of exchange in global financial markets? Why?

Q: Why is credit risk higher in international markets?

Why is credit risk higher in international markets?

Q: List the inputs that are used in calculating a Eurocredit price?

List the inputs that are used in calculating a Eurocredit price?

Q: What are agency costs, and how are they related to the

What are agency costs, and how are they related to the use of debt financing?

Q: Use the financial information for Starlight from Problem 19.1.

Use the financial information for Starlight from Problem 19.1. Assume now that equity accounts do not vary directly with sales but change when retained earning change or new equity is issued. The comp...

Q: Use the financial statements from Problem 16.1 and the information

Use the financial statements from Problem 16.1 and the information from Problem 16.2 to calculate the company’s retention(plowback) ratio, external funds needed (EFN), internal growt...