Questions from Financial Management

Q: Discuss the difference between performing the capital budgeting analysis from the parent

Discuss the difference between performing the capital budgeting analysis from the parent firm’s perspective as opposed to the subsidiary’s perspective.

Q: How might a MNC use transfer pricing strategies? How do import

How might a MNC use transfer pricing strategies? How do import duties affect transfer pricing policies?

Q: How did the credit crunch become a global financial crisis?

How did the credit crunch become a global financial crisis?

Q: Define the concept of a real option. Discuss some of the

Define the concept of a real option. Discuss some of the various real options a firm can be confronted with when investing in real projects.

Q: Discuss what is meant by the incremental cash flows of a capital

Discuss what is meant by the incremental cash flows of a capital project.

Q: Assume a currency swap in which two counterparties of comparable credit riskeach

Assume a currency swap in which two counterparties of comparable credit riskeach borrow at the best rate available, yet the nominal rate of one counterpartyis higher than the other. After the initial...

Q: What makes the APV capital budgeting framework useful for analyzing foreign capital

What makes the APV capital budgeting framework useful for analyzing foreign capital expenditures?

Q: Discuss the implications of the deviations from purchasing power parity for countries’competitive

Discuss the implications of the deviations from purchasing power parity for countries’competitive positions in the world market.

Q: Suppose a Spanish MNC has a mirror-image situation and needs

Suppose a Spanish MNC has a mirror-image situation and needs $2,900,000 tofinance a capital expenditure of one of its U.S. subsidiaries. It finds that it mustpay a 9 percent fixed rate in the United S...

Q: What problems can enter into the capital budgeting analysis if project debt

What problems can enter into the capital budgeting analysis if project debt is evaluated instead of the borrowing capacity created by the project?