WE PROVIDE CASE STUDY ANSWERS, ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS
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International
Financial Management
1.
What is all that you would like to tell the top
management so as to establish your credibility?
2.
What will you do next? How will you present your
analysis?
3.
Should your company make this investment? If
yes, then which will be the best route to (a) maximization of profits, (b)
minimizing risk, (c) finding the optional mix of profits and risk.
What
all information to you need to arrive at these answers? How will you structure
your analysis?
4.
How will you proceed to structure this
situation? What all information will be needed? What is your perception of the
risks involved in the proposed structure?
5.
How will you guide your CEO in this situation?
6.
What are the choices available with you to meet
these cash flow requirements? Analyze each possibility in detail and argue for
and against each of them.
7.
What will you do? How you will protect your
interest in this situation?
8.
1. A
young financial analyst in Canadian firm has been assigned the task of
evaluating a direct investment project in Mexico. She has worked out the
operating cash flows of the project for the next 7 years For finding the NPV of
the project she proposes the following four alternatives:
(a) Discount the nominal MEP (Mexican Peso)
cash flows using the Mexican nominal interest rate used for similar projects
and translate into CAD using the current MEP/CAD spot rate.
(b) Discount the real i.e. inflation adjusted
MEP cash flows using the Mexican real interest rate and translate at the
current spot rate.
(c) Forecast the MEP/CAD exchange rate for
the next 7 years using PPP; translate nominal MEP cashflows into nominal CAD
cash flows; discount using nominal CAD interest rate used for similar projects.
(d) Adjust the nominal CAD cash flows for Canadian
inflation and discount using real Canadian interest rate.
Her
boss says that if relative PPP and covered interest parity hold, the above
alternatives would yield identical answers. Is he right? If not, can you
correct him? Justify your answers with appropriate and sufficiently detailed
arguments.
2. Consider a firm with a healthy cash
flow but very low profits—because, for example, of high depreciation
allowances. Your boss argues that such a firm should probably borrow in a
strong (low-interest) currency, because the high-tax shield from weak-currency
loans is more likely to be lost than the low tax shield from strong-currency
loans. Is this analysis accurate?
WE PROVIDE CASE STUDY ANSWERS, ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS
ARAVIND - 09901366442 –
09902787224
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