A U.S. company has the following choices of financial markets in which to raise capital. Which one will it most often prefer? a.foreign bond b.domestic banks c.foreign bank d.a new issue of common stock
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- Which of the following is a function of the primary capital market a. To allow the Foreign Institutional Investors (FIls) to invest in the Indian capital markets b. To allow the companies to raise funds to meet their short term funds requirements through new securities O c. To provide a market for trading with the outstanding long term securities O d. To provide a market for trading with the existing short term securitiesWhich of the following is a function of the primary capital market a.To allow the Foreign Institutional Investors (Fils) to invest in the Indian capital markets b To allow the companies to raise funds to meet their short term funds requirements through new securities c. To provide a market for trading with the outstanding long term securities d. To provide a market for trading with the existing short term securitiesFrom a practical standpoint, how do international markets differ from domestic markets? What role do international securities play in a corporate portfolio? In what ways do investors quantify the risk levels between domestic and foreign securities? What asset allocation strategies and weightings would you consider when investing in international securities? Explain your reasoning.
- Commercial paper markets are trading a. Municipal bonds b. Private company bonds c. Federal Reserve bonds d. Treasury bonds For a commercial bank, to calculate its profitability we may look at a. Equity Ratio b. Return on assets c. Return on investment d. US Treasury bond holdingsWhich of the following facilitates trading of short term corporate bonds in an economy? Select one: A. Capital Market B. All of the given options C. Money Market D. Foreign Exchange MarketIn what ways do investors quantify the risk levels between domestic and foreign securities? What asset allocation strategies and weightings would you consider when investing in international securities? Explain your reasoning.
- explain how Quantitative Easing (QE) by the Bank of England in recentyears, via open market operations in the money markets, has impacted bond and stock,prices including housing prices in the capital markets in the United Kingdom.A. What is a multinational corporation? Why do firms expand into other countries? B. Discuss at least six major factors which distinguish multinational financial management from financial management as practiced by a purely domestic firm. (Please consider doing additional research on this question and document your findings). C. Discuss exchange rate risk as they relate to multinational corporations. D. Describe the current International Monetary System. How does the current system differ from the system that was in place prior to August 1971? (Please consider doing additional research on this question and document your findings). E. What is the difference between spot rates and forward rates? When is the forward rate at a premium to the spot rate? At a discount? (Please consider doing additional research on this question and document your findings). F. From a managerial point of view, discA. What is a multinational corporation? Why do firms expand into other countries?B. Discuss at least six major factors which distinguish multinational financial managementfrom financial management as practiced by a purely domestic firm. (Please considerdoing additional research on this question and document your findings).C. Discuss exchange rate risk as they relate to multinational corporations.D. Describe the current International Monetary System. How does the current system differfrom the system that was in place prior to August 1971? (Please consider doingadditional research on this question and document your findings).E. What is the difference between spot rates and forward rates? When is the forward rateat a premium to the spot rate? At a discount? (Please consider doing additionalresearch on this question and document your findings).F. From a managerial point of view, discuss how your responses above will help Citrus, Inc.as they plan to expand overseas.
- What asset allocation strategies and weightings would you consider when investing in international securities? Explain your reasoning.Bulldogs Inc., a hypothetical Philippine manufacturing company, wishes to raise debt capital from the public investors again. What should it do? Tap the secondary bond market. Approach and sell corporate bonds directly to SM Group. Sell and issue stocks to the public through the Philippine Stock Exchange. Secure loans from the BDO Unibank.Determine the key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for your rationale. What impact does foreign investment have on the weighted average cost of capital calculations?
