1. For capital budgeting of international projects typically the discount rate is adjusted. Why is this? How should a firm determine an appropriate discount rate? Should it be the same for all foreign...

1. For capital budgeting of international projects typically the discount rate is adjusted. Why is this? How should a firm determine an appropriate discount rate? Should it be the same for all foreign projects?

2. Sovereign Wealth Funds have become an important source of financing of both debt and equity for corporations. What is a sovereign wealth fund? Where do they secure their financing? What features of these funds make them attractive sources of financing for companies?

3.The Eurocurrency market is used by multinational firms for short-term investments and financing and for currency hedging. What is the Eurocurrency market? Usually more attractive rates can be obtained both for investments and financing than in the domestic market of the firm, even in its own currency (i.e. a lower spread between deposit and borrow rates). Why is this? How can a firm hedge currency exposure in the Eurocurrency market?