Making foreign direct investments

Assignment Help Financial Management

Reference no: EM131495682

1. Cash flow projections are a central component to the analysis of new investment ideas. In most firms, the person responsible for making these projections is not the same person who generated the investment idea in the first place? Why?

2. How can currency risk and political risk be minimized when one is making foreign direct investments?

Reference no: EM131495682

Questions Cloud

What is the company target debt-equity ratio : What is the company’s target debt-equity ratio?

Interest rate or discounting rate impact decisions : Long term, does even a small % difference in interest rate or discounting rate impact decisions or have a large impact on overall numbers.

Capital structure weights on book value basis : Dinklage Corp. has 8 million shares of common stock outstanding. What are the company's capital structure weights on a book value basis?

What is the company cost of equity capital : Twice Shy Industries has a debt-equity ratio of 1.6. Its WACC is 8.6 percent, and its cost of debt is 6.1 percent. What is the company’s cost of equity capital?

Making foreign direct investments : How can currency risk and political risk be minimized when one is making foreign direct investments?

What do you predict the exchange rate will be in one year : Suppose the spot exchange rate for the Hungarian forint is HUF 204.82. What do you predict the exchange rate will be in one year?

What is yield to maturity if interest is paid semiannually : What is the yield to maturity if interest is paid once a year? What is the yield to maturity if interest is paid semiannually?

What would be the value of the investment : What would be the value of the investment if the money is invested in U.S and Great Britain?

When are lost profits appropriate : When are “lost profits” (aka “benefit of the bargain damages) appropriate?

User Account

All Pages