User Account

All Pages

Analyze the risks of interest rate and currency swaps

Assignment Help Financial Management
Reference no: EM131520642

Finance Assignment

Discussion Question 1: "Interest Rate and Currency Swaps"

Please respond to the following:

• Compare and contrast interest rate swaps and currency swaps to determine which type of swap you believe is most appropriate for the most investors. Explain your rationale.

• From the first e-Activity, analyze the risks of interest rate and currency swaps of the country you researched. Provide specific examples to support your response.

Discussion Question 1b: "International Portfolio Investment"

Please respond to the following:

• From the second e-Activity, discuss the conditions under which exchange rate changes could actually reduce the risk of foreign investment for the company you researched in the country you selected. Provide specific examples to support your response.

• Explain how the advent of the euro affects international diversification strategies.

E-ACTIVITIES FOR Discussion Question 1 AND 1B

e-Activities

• Use the Internet to research the risk of interest rate and currency swaps of a foreign country of your choice. Be prepared to discuss.

• Use the Internet to research a U.S.-based publicly-traded company and the exchange rate of a foreign country in which that company does not currently conduct business. Be prepared to discuss.

Discussion Question 2: "Foreign Direct Investment and Cross-Border Acquisitions"

Please respond to the following:

• From the first e-Activity, create a list of 2-3 scenarios that would encourage the firm you researched to invest overseas, as well as a list of the most likely risks that firm would encounter when doing so. Explain your rationale.

• Select a country with which you are (at least somewhat) familiar and create 2 to 3 best practices for managing the risks associated with direct foreign investment.

Discussion Question 2b: "International Capital Structure and the Cost of Capital"

Please respond to the following:

• From the second e-Activity, create a list of actions the company you researched could take to mitigate the negative effects of operating in a segmented capital market. Explain your rationale.

• Discuss the conditions under which you would recommend a foreign subsidy conform to the local norm of financial structure. Provide examples to support your response.

E-ACTIVITIES FOR Discussion Question 2 AND 2B

• Use the Internet or the Strayer Online Library to research a U.S.-based publicly-traded company in which you are at least somewhat familiar. Be prepared to discuss.

• Use the Internet or the Strayer Online Library to research a publicly-traded company currently operating in a segmented capital market (a different company than the one researched in the first e-Activity). Be prepared to discuss.

Reference no: EM131520642

Questions Cloud

What is best estimate of the current stock price : What is the best estimate of the current stock price?
What stock price at maturity does the trader break even : The trader holds his position until maturity. For what stock price(s) at maturity, does the trader break even?
Selection and assessment of potential employees : Explain the guidelines you would establish for use of an HRIS for the selection and assessment of potential employees.
What is tartuffe about : What is Tartuffe about? How does it it reflect the historical period and culture that produced it
Analyze the risks of interest rate and currency swaps : Analyze the risks of interest rate and currency swaps of the country you researched. Provide specific examples to support your response.
Why does stock have a higher standard deviation : Stock X has a beta of 1.5 and standard deviation of 45%. Why does Stock x have a higher standard deviation?
Discuss the expenditure budgets : The mission and objectives of the organisation are the starting point, but a discussion of performance measurement, the reports required to control.
What is the difference in planning report and proposal : What is the difference in planning report and proposal? Give example.
Decision-making and negotiations : What are biases and how do they play a role in decision-making and negotiations? Whose biases impact the process?

Reviews

Write a Review

Financial Management Questions & Answers

  What is this projects equivalent annual cost or eac

A five-year project has an initial fixed asset investment of $315,000, what is this project’s equivalent annual cost, or EAC?

  Common in commercial real estate

Your firm has taken out a $536,000 loan with 8.2% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. To do this, you will make 59 equal payments ba..

  Stock expected return beta

Stock Expected Return (rs) Beta. What is the portfolio’s expected return? What is the portfolio’s beta risk? Is it more or less risky than the market? The investor is not comfortable with holding a portfolio that has a risk not equal to that of the m..

  Five-year project has an initial fixed asset investment

A five-year project has an initial fixed asset investment of $335,000, an initial NWC investment of $35,000, and an annual OCF of −$34,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.

  Considering project-will result in initial aftertax cash

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.86 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. What is the maximum initial cost the co..

  Prepare the for january through march

Prepare the for January through March and determine the balances in the following accounts as of March

  Consider a bond paying a coupon rate

Consider a bond paying a coupon rate of 8% per year annually when the market interest rate is 6% per year. The bond has six years until maturity and its par value is $1000. What are the bond’s price today (P0), its price 1 year from now after the nex..

  How many years will it take to reach your goal

You have $20,710.51 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $280,000. You expect to earn 14% annually on the account. How many years will it take to reach your goa..

  Compute the approximate yield to maturity

Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which, of course, is also the amount of principal to be paid at maturity. The bonds are currently selling for $750. They have 10 years remaining to maturity. The annual int..

  What bid price per stamp should you submit

Consider a project to supply 70 million postage stamps to the U.S. Postal Service for the next five years. What bid price per stamp should you submit?

  Compute the discounted payback statistic for project

Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is..

  Why is it important for company abc to know its wacc

If Company ABC wanted to lower its WACC, what could it do? Why is it important for Company ABC to know its WACC?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd