tailieunhanh - Lecture Multinational financial management - Topic 1: Introduction to multinational finance

Topic 1 - Introduction to multinational finance. In this chapter, the learning objectives are: Students understand the course learning objectives, requirements, and methods; students understand what globalization is and how it affects financial managers. | Topic #1: Introduction to multinational finance L. Gattis The Pennsylvania State University Finance 407: Multinational Financial Management 1 Problems 2 (Topic 8) Suppose the spot Mexican peso is – and one year forward market is . Mexican investing and borrowing interest rates are 8-10%. . investing and borrowing interest rates are 1-3%. The Mexican credit default swap (CDS) market rate is 150bps-175bps. What are your USD covered interest arbitrage profits with a CDS borrowing $100,000 in the . and investing pesos? (Topic 14) Bayer Material Science division is considering an investment in Chile. The project would cost 100,000 Chilean pesos today and is expected to return 120,000 pesos in one year. The USD WACC for the Chilean investment is 15%. The spot price is 450 Peso/USD. Interest rates in the . are 3% and interest rates in Chile are 7%. What is the USD NPV converting the peso FCFs to USD using the IRP exchange rate and discounting at the USD WACC? . | Topic #1: Introduction to multinational finance L. Gattis The Pennsylvania State University Finance 407: Multinational Financial Management 1 Problems 2 (Topic 8) Suppose the spot Mexican peso is – and one year forward market is . Mexican investing and borrowing interest rates are 8-10%. . investing and borrowing interest rates are 1-3%. The Mexican credit default swap (CDS) market rate is 150bps-175bps. What are your USD covered interest arbitrage profits with a CDS borrowing $100,000 in the . and investing pesos? (Topic 14) Bayer Material Science division is considering an investment in Chile. The project would cost 100,000 Chilean pesos today and is expected to return 120,000 pesos in one year. The USD WACC for the Chilean investment is 15%. The spot price is 450 Peso/USD. Interest rates in the . are 3% and interest rates in Chile are 7%. What is the USD NPV converting the peso FCFs to USD using the IRP exchange rate and discounting at the USD WACC? (Topic 18) Assume that a global portfolio has an expected return of 8% and standard deviation of 16%. domestic portfolio has an expected return of 6% and standard deviation of 14%. The risk free rate of return is 1%. What is the global volatility improvement (reduction in standard deviation) if an investor desires a 4% expected return? What are the portfolio weights in the global portfolio and risk free asset to achieve the targeted expected return? Polls 3 - Turn on iclicker, hold power until blinking, press DD to set classroom frequency I. I have used clickers in the classroom True: I have used iclickers False: I have NOT used iclickers II. Previous iclicker experience Favorable view of iclickers in the classroom Negative view of iclickers in the classroom Learning Objectives and Agenda 4 Agenda Syllabus Review PowerPoint #1 Learning Objective Students understand the course learning objectives, requirements, and methods Students understand what globalization is and how it affects .