Questions from Financial Management

Q: What is LIBOR? How does it compare to the U.

What is LIBOR? How does it compare to the U.S. prime rate?

Q: Comment on any dilemmas that multinational firms and their foreign affiliates may

Comment on any dilemmas that multinational firms and their foreign affiliates may face in regard to debt ratio limits and dividend payouts.

Q: What allegations are sometimes made against foreign affiliates of multinational firms and

What allegations are sometimes made against foreign affiliates of multinational firms and against the multinational firms themselves?

Q: List the factors that affect the value of a currency in foreign

List the factors that affect the value of a currency in foreign exchange markets.

Q: Explain how exports and imports tend to influence the value of a

Explain how exports and imports tend to influence the value of a currency.

Q: What is meant by translation exposure in terms of foreign exchange risk

What is meant by translation exposure in terms of foreign exchange risk?

Q: What factors influence a U.S. business firm to go

What factors influence a U.S. business firm to go overseas?

Q: Howell Auto Parts is considering whether to borrow funds and purchase an

Howell Auto Parts is considering whether to borrow funds and purchase an asset or to lease the asset under an operating lease arrangement. If the company purchases the asset, the cost will be $10,000....

Q: What procedure(s) would you recommend for a multinational company

What procedure(s) would you recommend for a multinational company in studying exposure to political risk? What actual strategies can be used to guard against such risk?

Q: If we divide users of ratios into short-term lenders,

If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, in which ratios would each group be most interested, and for what reasons?