Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Corporate Finance Expert

Attempt all the problems. 

Section-A

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.

Section-B

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

Managerial finance - assignmentas a financial analyst you

MANAGERIAL FINANCE - ASSIGNMENT As a financial analyst, you have been asked to analyze a firm. Your task is to make a recommendation as to whether or not to invest in this firm given the analysis you undertake. Assignmen ...

Dr jones conducted a study examining the relationship

Dr. Jones conducted a study examining the relationship between the amount of sugar in a child's diet and the activity level of the child. A sample of thirty 4-year-old children from a local preschool was used in the stud ...

Evaluate a business meetingattend a business meeting at

Evaluate a business meeting Attend a business meeting at work, a city council meeting in your community, a student organization meeting at school, or some other meeting. Observe the meeting and evaluate how well the faci ...

1 why is a vibrant ipo market considered vital to the

1. Why is a vibrant IPO market considered vital to the success of a nation's venture capital industry? What impact did the collapse of Germany's Neuer Markt have on the European venture capital industry? 2. Describe the ...

Finance helpgenesis energys newly established operations

Finance help Genesis Energy's newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified. A major consider ...

Assignmentbudgeting is an important activity within every

Assignment Budgeting is an important activity within every healthcare organization. The particular challenges encountered, however, can vary depending on the type of organization. A state or federally funded organization ...

Write an email to employees about new security

Write an email to employees about new security procedures. Imagine that you work for a news organization. Because of recent bomb threats to your building, facility management will implement new security procedures. In th ...

Ethical dilemma jason is in his mid-50s and was raised by

Ethical Dilemma. Jason is in his mid-50s and was raised by parents of the Depression era. As a result, he is very risk adverse. He recently came into a very large amount of money and he wants to put it where it will be s ...

Write a memo rejecting an idea to shorten wait linesyoure

Write a memo rejecting an idea to shorten wait lines. You're new to the management staff of Cedar Point, a large amusement park in Sandusky, Ohio. Cedar Point is renowned for its 14 roller coasters and dozens of other ex ...

Create a customized slide templateyou are the owner of a

Create a customized slide template. You are the owner of a mid-sized insurance company. You have 25 agents who travel throughout the country, making presentations to small groups of people (10 to 20) regarding retirement ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen