Corporate Fin Mgt NDLM.PDF

In general, the sensitivity of a fixed-income bond is greater if coupon rate is smaller and its residual period is longer. Durat ...

There exist two types of future contracts: Short-term contracts which permit the enterprises to cover themselves against short- ...

demonstrate that the operator has money to honor his side of the bargain. As long as interest is earned on margined securities, ...

Limitations of Interest Rate Futures Basis risk is incurred when the maturity date of borrowing or lending does not coincide wi ...

Instruments on over-the-counter (OTC) market Several new instruments for covering interest rate risk have developed over the y ...

Borrowing rate options. These options enable an enterprise to ensure a borrowing rate, while letting it have all the freedom to ...

Collars. Collars are a combination of caps and floors. The purchase of a collar enables its buyer to ensure a maximal borrowin ...

Measures Taken for Salvaging Adverse BOP in the form of Restrictions on outgoing capital, Restrictions on imports and Measures A ...

dispute. However, it may be noted that these bilateral conventions only diminish political risk but do not eliminate it complete ...

exporting country should specialize in the production of only those products in which it has a comparative cost advantage. This ...

domestic operations. The fund raising activities on the part of multinational enterprises just go contrary to the basic philosop ...

Sales through legal agents on payment of commission; Recourse to international trading companies. These are very well developed ...

Turnkey projects A turnkey project contract stipulates setting up or construction of a factory which will be transferred to it ...

Activities of venture capital Venture capital represents a mode of financing, particularly adapted to development of enterpris ...

project’s profitability. The reason is obvious – but for the investment abroad, additional sales would not have been possible. ‘ ...

Like domestic capital budgeting decisions, foreign investment decisions require to be evaluated on the basis of their cash flow ...

Exchange rate risk is yet another significant variable to be considered in assessing foreign direct investment. This risk is ver ...

Third, a convenient unit of account should be chosen. This may be the unit of currency in which returns from the project are mea ...

Local Debt The computation of cost of debt is relatively easy particularly when borrowings by subsidiaries are from local bank ...

Conceptually, the cost of equity capital for a firm is the minimum rate of return necessary to induce investors to buy or hold t ...