Ask Question, Ask an Expert


Ask Corporate Finance Expert

Attempt all the problems. 


problem1) Describe the issues involved in international capital budgeting decisions. Are the traditional methods of evaluating capital budgeting decisions appropriate, why?

problem2) What are the various types of foreign exchange exposure? describe the methods to hedge foreign exchange exposure.

problem3)a) What are currency derivatives? Distinguish currency forward with currency futures.

b. An Indian exporter who has 3 month receivable of US$ 10,000 wants to hedge his position. Present spot rate of Rs/$ is 58.75 and Rs. is likely to appreciate in 3 months by at least 15%. How could the exporter hedge his position if the forecast it accurate? Show your calculation.

problem4) What are the International sources of funds? Describe after categorizing it into equity & debt fund and long-term & short term.


Case Study

Company A is AAA rated Indian company who wishes to raise US$ 10 million to fund its US subsidiary from international market including US market.  It could raise funds through 10.50 % fixed rate bonds.  Alternatively, it could raise it through a floating rate bond at LIBOR + 0.50%. 
The present exchange rate is Rs.50/US$.

Company B is BBB rated US Company who wishes to raise Rs. 500 million from Indian market to finance its Indian subsidiary.  It could raise funds through 12.50 % fixed rate bonds. Alternatively, it could raise it through a floating rate bond at LIBOR + 1.25%.

Case problems:

Suppose that you are a swap dealer, who charge 0.50 % fee.  Design a swap deal for Company A and Company B in such a way that it benefits both Companies.  Also determine the fees of swap dealer and net saving for each company in the first year.

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M93204

Have any Question? 

Related Questions in Corporate Finance

Prepare visuals for a presentation about sales lettersyou

Prepare visuals for a presentation about sales letters. You are the trainer for a course on effective advertising techniques that is being offered to franchise owners of your Mexican fast-food chain. As part of the cours ...

What is the primary role of the bolts in a bolted jointwhy

What is the primary role of the bolts in a bolted joint? Why do many designers of safety related joints, and most codes, favor joints that could support four or more times the anticipated service loads? You have roughed ...

Analyze the case study frank smith plumbinganalyze the

Analyze the case study, "Frank Smith Plumbing." Analyze the "Frank Smith Plumbing worksheet" spreadsheet. Complete the specified calculations and submit the Microsoft Excel document with the assignment Develop a 750-900 ...

Scenic tours inc is a provider of bus tours the company is

Scenic Tours Inc is a provider of bus tours. The company is considering replacing 10 of its older buses. The existing buses were purchased 4 years ago at a total cost of $2,700,000 and are being depreciated using MACRS a ...

Evaluation of the agencys budgeting and cumulative reportas

Evaluation of the Agency's Budgeting and Cumulative Report As a consultant, you need to develop an in-depth analysis and evaluation of the selected agency's budgeting and then provide recommendations for improvement. The ...

Delta airlinesusing the annual report from the company that

Delta Airlines Using the annual report from the company that you have selected for your Final Project, discuss the risks the company faces and the actions they take to mitigate those risks. Refer to the Management Discus ...

Deficit budgetin july 2003 the medical college of ohio mco

DEFICIT BUDGET? In July 2003, the Medical College of Ohio (MCO) (now part of the University of Toledo) approved its first deficit budget of $3.4 million, but no programs or faculty members were cut. MCO announced a "miss ...

Assignmentpart 11 which of the following statements is

Assignment Part 1 1. Which of the following statements is CORRECT? The New York Stock Exchange is an auction market with a physical location. Capital market transactions involve only the purchase and sale of equity secur ...

Evaluate responses to the request for information about

Evaluate responses to the request for information about school. Compare responses to the previous exercise. When you look at two other students' responses to the same request for information, you'll likely see difference ...

Review the assigned companys financial statements from the

Review the assigned company's financial statements from the past three years. Company assigned: Nike, symbol NKE. Calculate the financial ratios for the assigned company's financial statements, and then interpret those r ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro