TAILIEUCHUNG - Lecture Multinational financial management: Lecture 17 - Dr. Umara Noreen

Lecture 17 - Multinational cost of capital and capital structure. After completing this chapter, students will be able to: To explain how corporate and country characteristics influence an MNC’s cost of capital; to explain why there are differences in the costs of capital across countries; and to explain how corporate and country characteristics are considered by an MNC when it establishes its capital structure. | Multinational Cost of Capital and Capital Structure 17 Lecture Chapter Objectives To explain how corporate and country characteristics influence an MNC’s cost of capital; To explain why there are differences in the costs of capital across countries; and To explain how corporate and country characteristics are considered by an MNC when it establishes its capital structure. Cost of Capital A firm’s capital consists of equity (retained earnings and funds obtained by issuing stock) and debt (borrowed funds). The cost of equity reflects an opportunity cost, while the cost of debt is reflected in the interest expenses. Firms want a capital structure that will minimize their cost of capital, and hence the required rate of return on projects. A firm’s weighted average cost of capital kc = ( D ) kd ( 1 _ t ) + ( E ) ke D + E D + E where D is the amount of debt of the firm E is the equity of the firm kd is the before-tax cost of its debt t is the corporate tax rate ke is the cost of financing .

• Tài chính doanh nghiệp
• Multinational financial management
• Financial management
• Lecture Multinational financial management
• Capital structure
• Multinational cost of capital
• Multinational cost
• Multinational capital budgeting
• Capital budgeting analysis
• International project
• Costs of capital
• Country risk analysis
• Multinational corporation
• Capital budgeting
• International financial reporting standards
• Foreign exchange risk management
• International cash management
• Cash flow analysis
• Centralized cash management
• Lesson International financial management
• International financial management
• Globalization Multinational Firm
• The Multinational Firm
• Multinational Corporations
• Foreign Exchange Risk
• Quản lý tài chính
• Quản lý tài chính đa quốc gia
• Multinational finance
• Finance careers
• Optimizing cash flows
• Investing excess cash
• Management control
• Corporate control
• MNCs Financial Management
• Goals of MNC
• The rise of the MNCs
• Internationalization of Business
• Multinational Financial Management Theory
• Cash flows
• Multiple choice
• International equity markets
• Measures of liquidity
• Market structure