Reference no: EM132871364

Discuss the main features of:(i) Corporate share repurchases (buy-backs); and(ii) Share (stock) splits; and why companies might use them. Include in your discussion comment on the possible effects on share price of share repurchases and share (stock) splits in comparison to the payment of dividends.

Discuss how government actions can influence the tasks of the financial manager and explain how these actions can affect the attainment of financial objectives.

Justify and criticize the usual assumption made in financial management literature that the objective of a company is to maximize the wealth of its shareholders.

Question I - Megatron, Inc. is a company with its principal offices in the United States. For years, Megatron has only operated domestically; however, Megatron's board of directors now feels it is in the company's best interests to explore how to do business internationally. Give at least three examples of actions Megatron can take with regards to foreign government officials, which would benefits Meagtron's international growth without running afoul of the Foreign Corrupt Practices Act (FCPA)?

Question II - Cowboy, Inc., an American corporation that produces cowboy hats contract with a manufacturing plant in France, Beret, Inc. The contract provides that Beret, Inc. will produce the cowboy hats in France to be distributed back in the United States by Cowboy, Inc. The contract does not provide which country's law will apply if a dispute arises between Cowboy and Beret. Eventually, Cowboy discovers that Beret is not producing the hats under the specifications agreed upon in the contract. Which will American or French law be used in settling the dispute? Why?

Also, provide a graduate-level response to each of the following questions:

1. Define expropriation, explain how it effects a county's investments in foreign counties, and how counties respond to it.
2. Sprockets Unlimited, a United States corporation, is considering doing business in a foreign country that is known to have an unstable government and corrupt politicians; however, the market could be lucrative and greatly expand Sprockets Unlimited's profits. What consideration should Sprockets Unlimited consider before doing so? Could the United States not allow Sprockets Unlimited to do business in this country?