Multinational Business Finance Eiteman 12th Edition Solutions Manual
Product details:
- ISBN-10 : 0136096689
- ISBN-13 : 978-0136096689
- Author: Eiteman Stonehill Moffett
Globalization and the Multinational Enterprise; Financial Goals & Governance; The International Monetary System; The Balance of Payments; Current Multinational Financial Challenges: Crisis; The Foreign Exchange Market
International Parity Conditions; Foreign Currency Derivatives; Interest Rate and Cross Currency Swaps; Foreign Exchange Rate Determination & Forecasting; Transaction Exposure; Operating Exposure; Translation Exposure; The Global Cost and Availability of Capital; Sourcing Equity Globally; Sourcing Debt Globally; International Portfolio Theory & Investment; Foreign Direct Investment Theory & Strategy; Multinational Capital Budgeting; Multinational Tax Management; Working Capital Management; International Trade Finance
Table contents:
PART I Global Financial Environment
1(136)
Globalization and the Multinational Enterprise
2(20)
Globalization and Creating Value in the Multinational Enterprise
3(1)
The Theory of Comparative Advantage
4(3)
What Is Different about Global Financial Management?
7(1)
Market Imperfections: A Rationale for the Existence of the Multinational Firm
8(1)
The Globalization Process
9(4)
Summary Points
13(9)
Mini-Case: Porsche Changes Tack
13(6)
Questions
Problems
Internet Exercises
19(3)
Financial Goals and Corporate Governance
22(28)
Who Owns the Business?
22(2)
What Is the Goal of Management?
24(4)
Corporate Governance
28(12)
Summary Points
40(10)
Mini-Case: Governance Failure at Enron
41(4)
Questions
Problems
Internet Exercises
45(5)
The International Monetary System
50(28)
History of the International Monetary System
50(6)
Contemporary Currency Regimes
56(6)
Emerging Markets and Regime Choices
62(2)
The Birth of a European Currency: The Euro
64(5)
Exchange Rate Regimes: What Lies Ahead?
69(1)
Summary Points
70(8)
Mini-Case: The Revaluation of the Chinese Yuan
71(3)
Questions
Problems
Internet Exercises
74(4)
The Balance of Payments
78(28)
Typical Balance of Payments Transactions
79(1)
Fundamentals of Balance of Payments Accounting
80(1)
The Accounts of the Balance of Payments
81(2)
The Capital and Financial Accounts
83(5)
The Balance of Payments in Total
88(3)
The Balance of Payments Interaction with Key Macroeconomic Variables
91(2)
Trade Balances and Exchange Rates
93(3)
Capital Mobility
96(3)
Summary Points
99(7)
Mini-Case: Turkey’s Kriz (A): Deteriorating Balance of Payments
99(2)
Questions
Problems
Internet Exercises
101(5)
Current Multinational Financial Challenges: The Credit Crisis of 2007-2009
106(31)
The Seeds of Crisis: Subprime Debt
106(3)
The Transmission Mechanism: Securitization and Derivatives of Securitized Debt
109(11)
The Fallout: The Crisis of 2007 and 2008
120(9)
The Remedy: Prescriptions for an Infected Global Financial Organism
129(2)
Summary Points
131(6)
Mini-Case: Letting Go of Lehman Brothers
132(2)
Questions
Problems
Internet Exercises
134(3)
PART II Foreign Exchange Theory and Markets
137(144)
The Foreign Exchange Market
138(26)
Geographical Extent of the Foreign Exchange Market
138(1)
Functions of the Foreign Exchange Market
139(1)
Market Participants
140(2)
Transactions in the Interbank Market
142(6)
Foreign Exchange Rates and Quotations
148(8)
Summary Points
156(8)
Mini-Case: The Venezuelan Bolivar Black Market
157(3)
Questions
Problems
Internet Exercises
160(4)
International Parity Conditions
164(33)
Prices and Exchange Rates
164(8)
Interest Rates and Exchange Rates
172(9)
Forward Rate as an Unbiased Predictor of the Future Spot Rate
181(2)
Prices, Interest Rates, and Exchange Rates in Equilibrium
183(1)
Summary Points
184(13)
Mini-Case: Currency Pass-Through at Porsche
185(1)
Questions
Problems
Internet Exercises
186(7)
An Algebraic Primer to International Parity Conditions
193(4)
Foreign Currency Derivatives
197(37)
Foreign Currency Futures
198(3)
Currency Options
201(2)
Foreign Currency Speculation
203(7)
Option Pricing and Valuation
210(3)
Currency Option Pricing Sensitivity
213(8)
Prudence in Practice
221(1)
Summary Points
222(12)
Mini-Case: Warren Buffett’s Love-Hate Relationship with Derivatives
223(3)
Questions
Problems
Internet Exercises
226(4)
Currency Option Pricing Theory
230(4)
Interest Rate and Currency Swaps
234(22)
Defining Interest Rate Risk
234(3)
Management of Interest Rate Risk
237(8)
Trident Corporation: Swapping to Fixed Rates
245(1)
Currency Swaps
246(1)
Trident Corporation: Swapping Floating Dollars into Fixed Rate Swiss Francs
247(2)
Counterparty Risk
249(1)
Summary Points
250(6)
Mini-Case: McDonald’s Corporation’s British Pound Exposure
251(1)
Questions
Problems
Internet Exercises
252(4)
Foreign Exchange Rate Determination and Forecasting
256(25)
Exchange Rate Determination: The Theoretical Thread
257(3)
The Asset Market Approach to Forecasting
260(2)
Disequilibrium: Exchange Rates in Emerging Markets
262(1)
Illustrative Case: The Asian Crisis
262(3)
Illustrative Case: The Argentine Crisis of 2002
265(5)
Forecasting in Practice
270(4)
Summary Points
274(7)
Mini-Case: JPMorgan Chase’s Forecasting Accuracy
274(2)
Questions
Problems
Internet Exercises
276(5)
PART III Foreign Exchange Exposure
281(84)
Transaction Exposure
282(38)
Types of Foreign Exchange Exposure
282(2)
Why Hedge?
284(3)
Measurement of Transaction Exposure
287(2)
Trident’s Transaction Exposure
289(8)
Management of an Account Payable
297(2)
Risk Management in Practice
299(1)
Summary Points
300(20)
Mini-Case: Xian-Janssen Pharmaceutical (China) and the Euro
301(2)
Questions
Problems
Internet Exercises
303(9)
Complex Options
312(8)
Operating Exposure
320(24)
Attributes of Operating Exposure
320(2)
Illustrating Operating Exposure: Trident
322(4)
Strategic Management of Operating Exposure
326(3)
Proactive Management of Operating Exposure
329(7)
Contractual Approaches: Hedging the Unhedgeable
336(1)
Summary Points
337(7)
Mini-Case: Toyota’s European Operating Exposure
338(2)
Questions
Problems
Internet Exercises
340(4)
Translation Exposure
344(21)
Overview of Translation
344(3)
Translation Methods
347(3)
Translation Example: Trident Europe
350(5)
Comparing Translation Exposure with Operating Exposure
355(1)
Managing Translation Exposure
355(4)
Summary Points
359(6)
Mini-Case: LaJolla Engineering Services
360(2)
Questions
Problems
Internet Exercises
362(3)
PART IV Financing the Global Firm
365(66)
The Global Cost and Availability of Capital
366(25)
Weighted Average Cost of Capital
368(5)
The Demand for Foreign Securities: The Role of International Portfolio Investors
373(6)
The Cost of Capital for MNEs Compared to Domestic Firms
379(1)
Solving a Riddle: Is the Weighted Average Cost of Capital for MNEs Really Higher Than for Their Domestic Counterparts?
380(2)
Summary Points
382(9)
Mini-Case: Novo Industri A/S (Novo)
383(4)
Questions
Problems
Internet Exercises
387(4)
Sourcing Equity Globally
391(19)
Designing a Strategy to Source Equity Globally
392(3)
Foreign Equity Listing and Issuance
395(2)
Effect of Cross-Listing and Equity Issuance on Share Price
397(2)
Barriers to Cross-Listing and Selling Equity Abroad
399(1)
Alternative Instruments to Source Equity in Global Markets
400(4)
Summary Points
404(6)
Mini-Case: Petrobras of Brazil and the Cost of Capital
404(4)
Questions
Problems
Internet Exercises
408(2)
Sourcing Debt Globally
410(21)
Optimal Financial Structure
410(1)
Optimal Financial Structure and the MNE
411(3)
Financial Structure of Foreign Subsidiaries
414(4)
International Debt Markets
418(6)
Summary Points
424(7)
Mini-Case: Tirstrup BioMechanics (Denmark): Raising Dollar Debt
424(2)
Questions
Problems
Internet Exercises
426(5)
PART V Foreign Investment Decisions
431(82)
International Portfolio Theory and Diversification
432(20)
International Diversification and Risk
432(3)
Internationalizing the Domestic Portfolio
435(6)
National Markets and Asset Performance
441(5)
Summary Points
446(6)
Mini-Case: Is Modern Portfolio Theory Outdated?
447(1)
Questions
Problems
Internet Exercises
448(4)
Foreign Direct Investment Theory and Political Risk
452(35)
Sustaining and Transferring Competitive Advantage
452(3)
The OLI Paradigm and Internalization
455(2)
Deciding Where to Invest
457(1)
How to Invest Abroad: Modes of Foreign Involvement
458(4)
Foreign Direct Investment Originating in Developing Countries
462(2)
Foreign Direct Investment and Political Risk
464(1)
Assessing Political Risk
465(1)
Firm-Specific Risks
466(3)
Country-Specific Risks: Transfer Risk
469(3)
Country-Specific Risks: Cultural and Institutional Risks
472(4)
Global-Specific Risks
476(3)
Summary Points
479(8)
Mini-Case: Mattel’s Chinese Sourcing Crisis of 2007
480(3)
Questions
Problems
Internet Exercises
483(4)
Multinational Capital Budgeting
487(26)
Complexities of Budgeting for a Foreign Project
488(1)
Project versus Parent Valuation
489(1)
Illustrative Case: Cemex Enters Indonesia
490(12)
Real Option Analysis
502(1)
Project Financing
503(2)
Summary Points
505(8)
Mini-Case: Trident’s Chinese Market Entry—An Application of Real Option Analysis
505(2)
Questions
Problems
Internet Exercises
507(6)
PART VI Managing Multinational Operations
513(77)
Multinational Tax Management
514(21)
Tax Principles
514(8)
Transfer Pricing
522(2)
Tax Management at Trident
524(1)
Tax Haven Subsidiaries and International Offshore Financial Centers
525(2)
Summary Points
527(8)
Mini-Case: Stanley Works and Corporate Inversion
527(4)
Questions
Problems
Internet Exercises
531(4)
Working Capital Management
535(30)
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