TAILIEUCHUNG - Lecture Multinational financial management - Topic 15: Global capital budgeting and country risk

Lecture Multinational financial management - Topic 15: Global capital budgeting and country risk. In this chapter, students will be able to understand value foreign investments using sovereign risk premiums, foreign proxies, cashflow adjustments and exchange rate forecasts. | Topic #15: Global Capital Budgeting and Country Risk L. Gattis The Pennsylvania State University 0 Finance 407: Multinational Financial Management Review Poll: NPV 1 Caterpillar, Inc. is investing $100M to build a plant in Indiana and expects three years of annual EBIT of $25M, depreciation of $15M, CAPEX of $10M, and additions to working capital $5M. CAT’s tax rate is 40% and beta is . The risk free rate is 2% and the market risk premium is 5%. CAT’s credit spread on its debt is 4% and D/E ratio is . CAT estimates that the investment is worth 5 times FCF in year 4. What is the NPV of the investment? (Hint: Compute NPV for initial investment + the present value of 3 FCFs + the present value of the exit multiple valuation) Hints:CF(0)=-$100, CF(1)=25*()+15-10-5=$15, D/(D+E)=.6/ A. -$12M B. -$6M C. $0M D. +$6M E. +$12M Review Poll: NPV 2 Caterpillar, Inc. is investing $100M to build a plant in Indiana and expects three years of annual EBIT of $25M, depreciation of $15M, .

• Tài chính doanh nghiệp
• Financial management
• Multinational financial management
• Quản lý tài chính
• Quản lý tài chính đa quốc gia
• Multinational finance
• Global capital budgeting
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
• Hospitality industry management
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point