FM11 Ch 26 Multinational Financial Management

... $0.40 26 - 13 What is exchange rate risk? Exchange rate risk is the risk that the value of a cash flow in one currency translated from another currency will decline due to a change in exchange ... regulatory obstacles  To reduce risk by diversification 26 - What are the major factors that distinguish multinational from domestic financial management?  Currency differences  Economic...

Ngày tải lên: 06/04/2015, 19:41

... 29 - How important are pension funds?  They constitute the largest class of investors  They hold about 33% of all U S stocks 29 - Pension Plan Terminology  Defined benefit plan: Employer ... aggregate actuarial uncertainty 29 - 17 What risks are borne by the plan sponsor and plan beneficiaries under the four types of pension plans?  Defined benefit plan: Most risk fall...

Ngày tải lên: 06/04/2015, 19:41

... 22 - Basic Definitions  Gross working capital: Total current assets  Net working capital: Current assets - Current liabilities  Net operating working capital (NOWC): Operating ... (More…) 22 -  Working capital management: Includes both establishing working capital policy and then the day-to-day control of cash, inventories, receivables, accruals, and accounts payabl...

Ngày tải lên: 06/04/2015, 19:41

... optimal amount of debt capital 30 - 28 What unique problems not-forprofit businesses encounter in financial analysis and planning and short-term financial management?  In general these tasks are ... of insufficient funding, or to use more than the theoretically optimal amount of debt 30 - 14 Why is capital budgeting important to not-for-profit businesses?  The financial...

Ngày tải lên: 06/04/2015, 19:41

... ordering costs increase  If Q > EOQ, total carrying costs increase, but ordering costs decrease 28 - 15 Suppose delivery takes weeks Assuming certainty in delivery and usage, at what inventory ... if you view cash as an operating assets, just like inventory  In this view, cash has a carrying cost, which is the opportunity cost for investing the funds, and an order cost, wh...

Ngày tải lên: 06/04/2015, 19:41

... portfolio risk management 23 - 20 How are risk exposures identified and measured?  Large corporations have risk management personnel which have the responsibility to identify and measure risks facing ... substantially in the interim 23 - 19 Chapter 23 Extension: Insurance and Bond Portfolio Risk Management  Risk identification and measurement  Property loss, l...

Ngày tải lên: 06/04/2015, 19:41

... 19 - What agencies regulate securities markets?  The Securities and Exchange Commission (SEC) regulates:  Interstate public offerings  National stock exchanges  Trading ... fund 19 - Differentiate between a private placement and a public offering  In a private placement, such as to angels or VCs, securities are sold to a few investors rather than to the public ... in final...

Ngày tải lên: 06/04/2015, 19:41

... is reported on balance sheets 15 - Total Corporate Value  Total corporate value is sum of: Value of operations Value of nonoperating assets 15 - Claims on Corporate Value  Debtholders have ... share = $376.94 /10 = $37.69 15 - 25 Value-Based Management (VBM)  VBM is the systematic application of the corporate valuation model to all corporate decisions and strategic in...

Ngày tải lên: 06/04/2015, 19:41

... 14 - Financial Planning and Pro Forma Statements  Three important uses: Forecast the amount of external financing that will be required Evaluate the impact that changes in the ... Set appropriate targets for compensation plans 14 - Steps in Financial Forecasting  Forecast sales  Project the assets needed to support sales  Project internally generated funds  Project...

Ngày tải lên: 06/04/2015, 19:41

... 197.9% 139 .4% 13 - 40 Analysis of Percent Change Balance Sheets  We see that total assets grew at a rate of 139 %, while sales grew at a rate of only 105% So asset utilization remains a problem 13 ... 0.0%-208.2%188.3% 13 - 37 Analysis of Percent Change Income Statement  We see that 2005 sales grew 105% from 2003, and that NI grew 188% from 2003  So Computron has becom...

Ngày tải lên: 06/04/2015, 19:41

... leverage provided by options as the underlying stock price increases, and the greater loss potential of options at higher option prices 8 - 13 What are the assumptions of the Black-Scholes Option Pricing ... for the sale/purchase of either the stock or the option  RRF is known and constant during the option’s life (More ) - 14  Security buyers may borrow any fraction of the purchas...

Ngày tải lên: 06/04/2015, 19:41

... the areas of financial management practices, financial characteristics, and profitability of v SMEs and to build a model of the impact of financial management practices and financial characteristics ... Firstly, it investigates financial management practices and financial characteristics of SMEs, and then, examines the impacts of financial management...

Ngày tải lên: 06/11/2012, 10:26

... How to strengthen Financial Management practices?(con’t) 4- Financial reporting  Financial reporting for Bank-funded projects: Project financial statement ( audited), periodic financial reports ... What is Financial Management? Process of planning and controlling financial resources to achieve optimum economic and financial benefits from an investment The main elements o...

Ngày tải lên: 18/10/2013, 11:15

... accountable governance Fiscal Management Budgeting and Budgetary Institutions Public Services Delivery Local Budgeting Public Expenditure Analysis Local Public Financial Management Local Governance in ... LOCAL PUBLIC FINANCIAL MANAGEMENT Introduction to the Public Sector Governance and Accountability Series Anwar Shah, Series Editor A well-functioning public sec...

Ngày tải lên: 23/10/2013, 09:15