Foreign exchange exposure, Financial Management

Assignment Help:

Using an appropriate 'factor model', assess (a) the performance of the management in creating value for shareholders and (b) the extent of the foreign exchange exposure of a FTSE100 company of your choice.

The following - while not intended to be entirely prescriptive - is intended to give you some idea of what your assignment should include.

  • An introduction that states the goals of your project - what are you setting out to explain? - and mentions any relevant literature (please do not include a long literature review, keep it focused and concise!). 
  • An explanation of the specification of your model.

o  Why did you choose these particular independent variables?
o  Why these particular functional forms?
o  What a priori hypotheses do you have?
o  What are the expected signs according to the underlying theory, etc?

  • Data.

o  A short description identifying data sources and any problems with these data.

  • Your results. (If you test a number of specifications, be sure to identify which you see as the best of these.)

o  An analysis of the results that includes a discussion of econometric problems encountered and tests that you have undertaken. The main results should be tabulated as done in academic research papers.

o  What is the significance of the results and how do they relate to the original questions posed in the introduction?
o  Are they consistent with the theory?
o  Is the model statistically adequate in representing the data?

  • A short summary & conclusions that includes your major findings and suggestions for further research.
  • A (short!) bibliography
  • An appendix which includes all regression runs and all relevant output. (In the case of very extensive listings, you may choose to supply these electronically.)

Related Discussions:- Foreign exchange exposure

Explain why preferred stock is similar to debt than equity, Question: a...

Question: a. Le Mustang company Ltd is foreseeing a growth rate of 15 per cent per annum in the next three years. It is likely to fall to 12 per cent in the fourth year. Afte

Tax-backed debt, An analyst should first examine the issuers ...

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

List the benefits of the flexible exchange rate regime, List the benefits o...

List the benefits of the flexible exchange rate regime. Answer:  The benefits of the flexible exchange rate system include: a) Automatic attainment of balance of payments eq

Illustrate the method of appraising capital investments, Q. Illustrate the ...

Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di

Valuing bonds with embedded options, Bond valuation would be relative...

Bond valuation would be relatively simple if interest rates exhibit little day-to-day volatility. One could value a bond by discounting each of its cash flows at

Explain and compare the costs of hedging, Explain and compare the costs of ...

Explain and compare the costs of hedging via the forward contract and the options contract. Answer: There is no up-front cost of hedging through forward contracts. Though, in t

What can financial institution do for deficit economic unit, What can a fin...

What can a financial institution Frequently do for a deficit economic unit (DEU) that it would have difficulty doing for itself if the DEU were to deal directly along with an SEU?

Exchange requirements-, Exchange Requirements To ensure money supply, s...

Exchange Requirements To ensure money supply, some central banks require some or all of its foreign exchange receipts (generally from exports) be exchanged for the local curren

Unemployed loans, where can i found a loan if i am unemployed ?

where can i found a loan if i am unemployed ?

Degree of uncertainty in predicting cash balances, Q. Degree of uncertainty...

Q. Degree of uncertainty in predicting cash balances? Probability approaches identify a degree of uncertainty in predicting cash balances and allow for a range of outcomes to

Write Your Message!

Captcha
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!

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