Multinational Finance Exam Preparation Reading List: Structure of the Exam: The exam is an open book with open notes. You should expect analytical, theoretical/conceptual, and empirical questions....

1 answer below »
I want to book a tutor for the specific time of the exam.


Multinational Finance Exam Preparation Reading List: Structure of the Exam: The exam is an open book with open notes. You should expect analytical, theoretical/conceptual, and empirical questions. Analytical questions require calculations, explanations of your logic in your analytical work, and interpretation of your results. Conceptual questions require crafting an argument based on theory and interpretation of real-life scenarios based on a theoretical framework. Empirical questions may require discussion of methodologies, empirical strategies, and interpretation of empirical findings. The exam question may be composed of a combination of all three. The exam's purpose is to evaluate your ability to use field-specific knowledge to craft arguments and offer solutions through critical thinking and analysis. Your answers should directly address the question, should be specific and appropriately rigorous. My grading will focus on your thought process, accuracy, originality, and articulation of your arguments. Books: · (IFS) International Finance: A Survey Edited by H. Kent Baker and Leigh A. Riddick; Oxford University Press 2012 · (ICF)International Corporate Finance: Value Creation with Currency Derivatives in Global Currency Markets, Laurent Jacques, Wiley 2015 · (IFM) International Financial Management, Beckert, and Hodrick, Oxford University Press 2014 · Multinational Business Finance, 14th Edition Exchange Rates · Review Michael Rosenberg's "Exchange Rate Determination" All 8 chapters. · What do we know about the long-run real exchange rate? Cletus Coughlin and Kees Koedjik · FX Determination (PPP, IFE, BOP Model, Monetary Model, Portfolio Balance Model etc.); · Chp 15 Salvatore · PPP Debate (Journal of Economic Perspectives) · The US Dollar's Equilibrium Exchange Rate, Michael Rosenberg, IIE · Sterling's Puzzling Behavior, Sushil B Wadhwani; Bank of England Quarterly Bulletin: November 1999 · Better Than Guesswork, The Economist · Do Firms Believe in Interest Rate Parity Exchange Rate Models: Bank of England's Sterling Model Practical/Topical · Current Developments in the FX Markets (Dollar/Euro rate; Yuan's internationalization; China's evolving exchange rate regime; the impact of COVID on monetary and fiscal policy Central Bank actions and exchange rate movements, central bank digital currencies ) · The Renminbi Goes Global, Barry Eichengreen Foreign Affairs 2018 Currency Risk & Risk Management · Corporate Risk Management In The Multinational Firm, Ulrich Hommel and Tobias Prokesch, IFS Chapter 4 · Currency Futures, Options, and Swaps; IFC Chapter 7 · Currency Derivatives and Swaps (Chapters 7 and 8 in MBF 14th Edition) · European Currency Options International Bond & Equity Markets: · International Corporate Debt Markets IFS Chapter 10 · Sourcing Debt in Global Bond Markets, ICF Chapter 10 · International Fixed Income Markets (Sercu Chapter 16) · International Debt Financing (Beakert and Hodrick, Chapter 11) International Equity Markets: · Why Do Companies List Shares Abroad?: A Survey of the Evidence and Its Managerial Implications (1995 ); Andrew Karolyi · Why and When We Should Cross List (Chapter 18 in Sercu) International Asset Pricing · International Finance: Theory into Practice; Chapters 16, 17, 18, 19 · Solnik, B. (2004). International Asset Pricing (Chapter 4) In International Investments (pp. 139–183). · International Capital Market Equilibrium (Beakert and Hodrick, Chapter 13) · Country and Political Risk (Beakert and Hodrick, Chapter 14) · Schramm, R. M., & Wang, H. N. (1999). Cost of Capital in an International CAPM Framework. Journal of Applied Corporate Finance, 12(3), 63–72. · René M. Stulz (2007) The Limits of Financial Globalization, Journal of Applied Corporate Finance Volume 19 Number 1 2007 · Kees G. Koedijk and Dijk, M. A. Van. (2004). Global Risk Factors and Cost of Capital. Financial Analyst Journal, 60(2), 32–38. · Global CAPM and Firm's Cost of Capital in Different Currencies, Thomas O'Brian JACF Managing Foreign Exchange Risk and Exposure · Philippe Juroin (1990) The Exchange Rate Exposure of US Multinationals, Journal of Business · Choi and Prasad (1995) Exchange Risk Sensitivity and Its Determinants: A Firm and Industry Analysis of US MNCs, Financial Management · Bodnar, G. M., & Wong, M. H. F. (2003). Estimating Exchange Rate Exposures. Financial Management (Wiley-Blackwell). https://doi.org/10.2307/3666203 · Pritamani et al. (2005) Exchange Rate Exposure of Exporting and Importing Firms, JACF 2005 · Muller, A. And Verschoor Willem (2006) European Foreign Exchange RiskExposure European Financial Management, Vol. 12, No. 2, 2006, 195–220 · Managing Economic Exposure, ICF Chapter 18 · Measuring and Managing Real Exchange Rate Risk · Aybar et al. (2015) Foreign Exchange Exposure and Emerging Market Multinationals: An Empirical Analysis, Unpublished Manuscript Capital Structure · Multinational Capital Structure and Cost of Capital, IFS Chapter 22 · Joillet, Muller (2011) Capital Structure Effects of International Expansion, JMFM · Fernandes (2011), Global Convergence of Financial Policies: Evidence from Emerging Markets · JIBS · Aybar et al. (2018) Adverse Shocks and EM Capital Structure DecisionsDraft · Barcley and Smith (2005) Capital Structure Puzzle International Cost of Capital · Sabal, J. (2004). The Discount Rate in Emerging Markets: A Guide. Journal of Applied Corporate Finance, 16(2–3), 155–166. https://doi.org/10.1111/j.1745-6622.2004.tb00547.x · Damodaran, A. (2003). Country Risk and Company Exposure: Theory and Practice. Journal of Applied Finance, 13(2), 63–76. · Incorporating Country Risk in Valuation of Offshore Projects, Donald Lassard, JACF · Damodaran, A. (2015). Country Risk : Determinants, Measures, and Implications · The Discount Rate in Emerging Markets: A Guide by Jaime Sabal 2004, JACF · René M. Stulz (1999) Globalization, Corporate Finance, and the Cost of Capital, Journal of Applied Corporate Finance Cross-Border Investments and Valuation · International Financial Management: International Capital Budgeting Chapter 15 and 16 · Multinational Business Finance by Eiteman et al. Chapters 17 and 18 (13th or 14th edition) · Damodaran, A. (2009). The Octopus : Valuing Multi-business, Multinational companies. New York, (November), 1–42 · Damodaran, A. (2009). Volatility Rules: Valuing Emerging Market Companies (September). https://doi.org/10.2139/ssrn.1609797
Answered 19 days AfterOct 06, 2021

Answer To: Multinational Finance Exam Preparation Reading List: Structure of the Exam: The exam is an open book...

Himanshu answered on Oct 25 2021
135 Votes
Part A
There are no shortcuts to success. Growing your business requires hard work, happy customers, and strategic advertising. However, there are additional opportunities that Airtel owners can pursue that can help them grow their business, such as acquisitions. Acquisition can be a powerful growth tool because you can gain in-depth knowledge o
f the previously unknown part of the industry, extended products or services, or new and desirable locations. Depending on the model of the particular business, growth in revenue may be faster than increased marketing and sales efforts, as funding may be easier and the economy of scale may be faster. The right acquisition can catch competitors abruptly and allow you to enter the market completely and completely.
Expected Risk for Airtel could be:
Risk # 1: Failure to comply with your strategic vision: As a business owner, Airtel have a vision for the future of your company. When acquiring a new company, it is important to think about the immediate and future impact that the acquisition will have on the Airtel business. To determine if the acquisition is right for you, consider how the new company will fit into the Airtel vision for the business and whether it will move you forward on the strategic business path.
Risk # 2: Traveling Too Fast
While Airtel may find a company that is very powerful and seemingly complete, Airtel still need to be careful to determine if the profit will be helpful in furthering the business goals. In addition, a comprehensive analysis of the company will help in assess potential risks associated with acquisitions.
Risk # 3: Not Walking Fast Enough
While doing the due diligence before buying is important, it is important to keep the final business goals in mind. Being preoccupied with minor or minor matters can consume a lot of time. Gathering a team of experienced business and legal professionals to help the sort out all the information and analyze the right things can help ensure that a good business acquisition is not lost.
Risk # 4: Forgetting the Current Business
In some cases, the purchase of a new company may seem daunting. Thus, Airtel may have less time to focus on the performance of the current business. However, it is still important to make sure that everything in the current business continues to follow its strategic direction. Staying involved in the current business operations during the merger can help you move forward with your last business goals.
The Danger of Consolidation
In many cases, combining the performance of the two companies proves that it is a much harder task in performance than it seemed in the imagination. This may result in the merger company not achieving the desired goals regarding cost savings from synergies and scale economies. Therefore, the work that might otherwise be acceptable may change.
Cultural Conflict
M&A transactions sometimes fail because the corporate culture of potential partner partners is different. Think of a solid technical ladder that gets a hot start to communication and you can get a picture.
Market Reaction
Market reactions to M&A transaction issues can be positive or negative, depending on market participants' perceptions of the merits of the agreement.
International CAPM
The worldwide CAPM assists investors in determining the return they desire for a particular degree of risk, which includes foreign hazards associated with various currencies. The CAPM was founded on the idea...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here