International Finance: Putting Theory Into Practice
16.3. HOW TO WEIGH YOUR BORROWING ALTERNATIVES 625 Table 16.4:Appalachian Barracuda Corp’s Analysis of Funding Offers The compe ...
626 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS PVthe spreads at the swap rate; add upfrontsThis is close to our first crite ...
16.3. HOW TO WEIGH YOUR BORROWING ALTERNATIVES 627 Table 16.5:Percentage total spreads of borrowing alternatives usdloan eurloan ...
628 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS Making a decision If cost is the only consideration, then in this example the ...
16.3. HOW TO WEIGH YOUR BORROWING ALTERNATIVES 629 Table 16.6:People’s Bank of China interest rates, late 2006 lending rate savi ...
630 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS rate. That midpoint rate would be 5.49, implying all-in spreads of 1.44%, as ...
16.4. CFO’S SUMMARY 631 hamburger-parity rate far above those of comparable countries, orppprates that are unusually high; excha ...
632 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS borrowing in developed markets should be more attractive, for the simple reas ...
16.5. TEST YOUR UNDERSTANDING 633 8.8 Test Your Understanding 11.4.1 Quiz Questions The questions also cover interest forwards a ...
634 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS Multiple-Choice Questions Eurocurrency and euroloan markets are attractive b ...
16.5. TEST YOUR UNDERSTANDING 635 (f) foreign exchange markets/money markets (g) open to all companies/open to the better compan ...
636 CHAPTER 16. INTERNATIONAL FIXED-INCOME MARKETS You bought an option that limits the interest rate on a future six-month loa ...
Chapter 19 Setting the Cost of International Capital This chapter deals with how to set the cost of capital, which is the discou ...
706 CHAPTER 19. SETTING THE COST OF INTERNATIONAL CAPITAL There seems to be two ways we could go about this, similar to what we ...
707 Rupee approach would still not exonerate us from thinking about expected exchange rate changes and exchange covariance risk: ...
708 CHAPTER 19. SETTING THE COST OF INTERNATIONAL CAPITAL of capital. In the second section, we present the traditional single-c ...
19.1. THE LINK BETWEEN CAPITAL-MARKET SEGMENTATION AND THE SEQUENCING OF DISCOUNTING AND TRANSLATION 709 flows. In short, althou ...
710 CHAPTER 19. SETTING THE COST OF INTERNATIONAL CAPITAL we want to value as that for the traded assets. To implement this proc ...
19.2. THE SINGLE-COUNTRYCAPM 711 The shortfall of 2 (=125 – 123) is due to the fact that highfdkcash flows tend to go together w ...
712 CHAPTER 19. SETTING THE COST OF INTERNATIONAL CAPITAL returns are related to risk in an efficient portfolio. This relationsh ...
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