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15 Cards in this Set

  • Front
  • Back
4 key financial functions (mgmt activities)
1) capital structure
2) capital budgeting
3) long-term financing
4) working capital managment
capital structure
determining proper mix of debt and equity
capital budgeting
analyzing investment opportunities
long-term financing
selection, issuance, mgmt of long-term debt and equity capital, inluding location and currency
working capital management
propert mgmt of comp's currency A/L
currency banked outside of its country of origin
dollars banked outside the US
interest rate that banks charge each other on Eurocurrency loans
Foreign bonds
sold outside of the country of the borrower but in the currency of the country of issue
sold in countries other than in the one in whose currency the bond is denominated
global bond
combination of domestic and euro bond

registered in diff nat'l mkts according to the registration reqs of each mkt
Reason for Asian fin'l crisis
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
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
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
Exposure management strategy
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