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United Airlines inaugurated service to Japan and wants to finance the purchase of Boeing 747s to service that route.
Successfully introducing a new business product or service requires significant planning. Forecasting allows the company to estimate the extent
The CFO of Eastman Kodak is thinking of borrowing Japanese yen because of its low interest rate, currently at 4.5%.
The cost of developing a mine on this property is estimated to be around $150 million.
A firm with a corporatewide debt-to-equity ratio of 1:2, an after-tax cost of debt of 7%, and a cost of equity capital of 15% is interested in pursuing.
Suppose IBM’s German unit faces a 35% corporate tax rate. What is the expected after-tax dollar cost of the euro-denominated bond?
If a firm can borrow €10 million of restricted funds, how much will it save annually in before-tax franc interest expense?
What is the basic reason for the existence of the Eurodollar market? What factors have accounted for its growth over time?
How much money has been raised in the past year in the international bond market? Eurocurrency market? International equity market?
A European company issues common shares that pay taxable dividends and bearer shares that pay an identical dividend but offer an opportunity to evade taxes.
What might have been Portugal’s motivations for scrapping the tax? What are the likely consequences of eliminating the withholding tax?
What is securitization? What forces underlie it, and how has it affected the financing policies of multinational corporations?
Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure?
What has happened to the real value of the yuan over the past year? Has it gone up or down? A little or a lot?
Suppose the investor financed the building with a 10% downpayment in yen and a 90% dollar loan accumulating interest at the rate of 8% per annum.
During 1993, the Japanese yen appreciated by 11% against the dollar. In response to the lower cost of its main imported ingredients—beef, cheese.
What financial, marketing, and production techniques can Chemex use to protect itself against operating exposure?
On September 1, the beginning of the model year, the exchange rate is ¥150:$1. Consequently, Nissan sets the U.S. sticker price at $12,000.
In 1985, Japan Airlines (JAL) bought $3 billion of foreign exchange contracts at ¥180/$1 over 11 years to hedge its purchases of U.S. aircraft.
In early 1992, GE announced that it would cut back its capital investment in Tungsram. What might have been the purpose of GE’s publicly announced cutback?
Mucho Macho is the leading beer in Patagonia, with a 65% share of the market. Because of trade barriers, it faces essentially no import competition.
A proposed foreign investment involves a plant whose entire output of 1 million units per annum is to be exported.
The required initial investment is $1.5 million (or SFr 2.38 million at the current exchange rate of $0.63 = SFr 1).
It has close to $1.2 billion in U.S. dollar debt whose proceeds it has used to purchase equipment abroad.
A U.S. company needs to borrow $100 million for a period of seven years. It can issue dollar debt at 7% or yen debt at 3%.