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15 Cards in this Set
- Front
- Back
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4 key financial functions (mgmt activities)
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1) capital structure
2) capital budgeting 3) long-term financing 4) working capital managment |
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capital structure
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determining proper mix of debt and equity
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capital budgeting
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analyzing investment opportunities
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long-term financing
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selection, issuance, mgmt of long-term debt and equity capital, inluding location and currency
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working capital management
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propert mgmt of comp's currency A/L
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Eurocurrency
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currency banked outside of its country of origin
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eurodollars
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dollars banked outside the US
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LIBOR
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interest rate that banks charge each other on Eurocurrency loans
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Foreign bonds
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sold outside of the country of the borrower but in the currency of the country of issue
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eurobonds
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sold in countries other than in the one in whose currency the bond is denominated
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global bond
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combination of domestic and euro bond
registered in diff nat'l mkts according to the registration reqs of each mkt |
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Reason for Asian fin'l crisis
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comps relied too muich on debt esp bank debt to fund their growth
lack of development of bond and equity mkts forced comps to relie on bank debt |
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ADR
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American Depositary Receipt
negotiable certificate issued by a US bank that represents shares of stock of a foreign corp represents underlying shares of a foreign corp's stock held in trust at a custodian bank in a foreign country popular way for a euroequity to get a listing in US |
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Global cash management:
things to be aware of |
local and corporate sys needs for cash
method and centralization of cash w/drawal from subsidiaries what to do w/centralized cash |
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Exposure management strategy
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1) Define and measure exposure
2) Organize and implement a reporting sys 3) Adopt a policy assigning responsibility for hedging 4) Formulate strategies for hedging |
