Answer all 5 questions. Each question is equally weighted. For full credit, illustrate your answers with examples from the cases.
List and explain the evidence for international determinants of capital structure. Compare and contrast the determinants of capital structure for a purely domestic firm https://essaytake.net/order.phpwith multinational firms.
Explain how hedging may create value for a firm. How would a treasure determine whether or not to hedge, as well as the correct strategy to hedge FX risks?
Explain how and why one can use interest rates and inflation rates to predict the movement of foreign exchange rates. Compare and contrast Interest Rate Parity (IRP), Purchasing
https://essaytake.net/order.php Power Parity (PPP), and the international Fisher Effect.
Explain how expected changes in FX rates affects a decision to invest or borrow abroad. Should the cash management function be centralized? Explain the advantages and disadvantages of having a centralized cash management system.
Suppose nations attempt to pursue independent monetary and fiscal policies. Explain how this would affect FX behavior. Would independent monetary and fiscal policies also affect political risks?