tailieunhanh - Lecture Multinational financial management - Topic 12: Measuring and managing transaction exposure

In this chapter students understand and can recall methods for measuring and managing transaction exposure; the definitions, implementation, and use of CaR to measure exchange rate risk; students can calculate transaction exposure/loss, students can calculate CaR given cashflow information and exchange rate volatility. | Topic #12: Measuring and managing transaction exposure L. Gattis The Pennsylvania State University 1 Finance 407: Multinational Financial Management Poll 2 Caterpillar’s Japanese subsidiary has yen receivables of ¥100M, payables of ¥200M, and debt of ¥300M. The USD is designated the functional currency. The accounts are recorded on the balance sheet at a spot rate of ¥. What is the translation gain or loss if the exchange rate is ¥85 at the end of the reporting period. A. -$94,310 B. +$94,310 C. -$668M D. +$668M Poll 3 Caterpillar’s Japanese subsidiary has yen receivables of ¥100M, payables of ¥200M, and debt of ¥300M due in 45 business days. The USD is designated the functional currency. What is Caterpillars 95%, 45 day, EaR if the annualized volatility of the $/Yen daily returns is 10% and the spot price is $.012/¥ (¥$)? (Assume 260 business days in a year to compute daily standard deviation) A. $.033M B. $.33M C. $ D. $33M E. $330M Learning Objectives 4 Students . | Topic #12: Measuring and managing transaction exposure L. Gattis The Pennsylvania State University 1 Finance 407: Multinational Financial Management Poll 2 Caterpillar’s Japanese subsidiary has yen receivables of ¥100M, payables of ¥200M, and debt of ¥300M. The USD is designated the functional currency. The accounts are recorded on the balance sheet at a spot rate of ¥. What is the translation gain or loss if the exchange rate is ¥85 at the end of the reporting period. A. -$94,310 B. +$94,310 C. -$668M D. +$668M Poll 3 Caterpillar’s Japanese subsidiary has yen receivables of ¥100M, payables of ¥200M, and debt of ¥300M due in 45 business days. The USD is designated the functional currency. What is Caterpillars 95%, 45 day, EaR if the annualized volatility of the $/Yen daily returns is 10% and the spot price is $.012/¥ (¥$)? (Assume 260 business days in a year to compute daily standard deviation) A. $.033M B. $.33M C. $ D. $33M E. $330M Learning Objectives 4 Students understand and can recall methods for measuring and managing transaction exposure the definitions, implementation, and use of CaR to measure exchange rate risk Students can calculate transaction exposure/loss Students can calculate CaR given cashflow information and exchange rate volatility Forex Exposure 5 I. Translation “Accounting” Exposure arises when reporting and consolidating financial statements require conversion from foreign currency to home currency. It is a possible accounting gain/loss on foreign assets and liabilities which are reported as losses in income or adjustments to equity (Translation exposures often lead to cashflow losses when accounts are liquidated) II. Cashflow Exposures Transaction Exposure: potential gains or losses on foreign transactions such as bond payments and receivables paid in the foreign currency. (Up until a payment is made, these are only translation exposures) Competitive Exposure: long-term exposure to currency change on future business. .

• Tài chính doanh nghiệp
• Financial management
• Multinational financial management
• Quản lý tài chính
• Quản lý tài chính đa quốc gia
• Multinational finance
• Managing transaction exposure
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
• Hospitality industry management
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point