TAILIEUCHUNG - Lecture Fundamentals of corporate finance - Chapter 21: International corporate finance

After studying this chapter, you should understand: How exchange rates are quoted, what they mean, and the difference between spot and forward exchange rates; purchasing power parity, interest rate parity, unbiased forward rates, uncovered interest rate parity, and the international Fisher effect and their implications for exchange rate changes; the different types of exchange rate risk and ways firms manage exchange rate risk; the impact of political risk on international business investing. | Chapter Outline Chapter 21 International Corporate Finance Chapter Organization Terminology Foreign Exchange Markets and Exchange Rates Purchasing Power Parity Interest Rate Parity, Unbiased Forward Rates, and the International Fisher Effect International Capital Budgeting Financing International Projects Exchange Rate Risk Political Risk Summary and Conclusions CLICK MOUSE OR HIT SPACEBAR TO ADVANCE Irwin/McGraw-Hill copyright © 2002 McGraw-Hill Ryerson, Ltd. Domestic Financial Management and International Financial Management Domestic financial management and international financial management differ in several important ways: Whenever transactions involve more than one currency, one must be concerned with the levels of, and possible changes in, exchange rates. Another risk that must be considered is the risk of loss associated with actions taken by foreign governments. This political risk can be difficult to assess, and difficult to hedge against; Financing opportunities encompass international capital markets and instruments, which can reduce the firm’s cost of capital. International Finance Terminology Belgian dentist: Stereotypical investor in Eurobonds interested in bonds denominated in foreign currencies that are unregistered (untraceable) and thus essentially tax-free. Cross-Rate: The implicit exchange rate between two currencies (usually .) quoted in some third currency (usually the . dollar). Eurobonds: International bonds issued in multiple countries but denominated in a single currency (usually the issuer’s currency). Eurocurrency: Money deposited in a financial center outside of the country whose currency is involved. International Finance Terminology (concluded) Foreign Bonds: International bonds issued in a single country, usually denominated in that country’s currency. Foreign Exchange Market: The market in which one country’s currency is traded for another. Gilts: .

• Tài chính doanh nghiệp
• Corporate finance
• Fundamentals of corporate finance
• Tài chính doanh nghiệp
• Business organization
• Financial management
• International corporate finance
• Intermediate corporate finance
• Lecture Intermediate corporate finance
• Corporate valuation
• Value based management
• Capital market history
• Raising capital
• Financial leverage
• Financial reporting
• Social welfare
• Forward contracts
• The stock markets
• Basic return concepts
• Portfolio theory
• Bond valuation
• Basic stock valuation
• Accounting for financial management
• Analysis of financial statements
• Financial planning
• Forecasting financial statements
• Capital budgeting
• Decision criteria
• Estimating cash flows
• Real options
• Capital structure decisions
• The levered firm
• Cash management
• Financial distress
• Hedging risk
• Warrants and convertibles
• Principles of corporate finance
• Understanding options
• Valuing options
• Financial analysis
• Financial manager
• Financial institutions