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International Financial Management

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Learning Objectives

images Discuss how the basic principles of finance apply to international financial transactions.

images Differentiate among the spot rate, the forward rate, and the cross rate in the foreign exchange markets, perform foreign exchange and cross rate calculations, and hedge an asset purchase where payment is made in a foreign currency.

images Identify the major factors that distinguish international from domestic capital budgeting, explain how the capital budgeting process can be adjusted to account for these factors, and compute the NPV for a typical international capital project.

images Discuss the importance of the Euromarkets to large U.S. multinational firms and calculate the cost of borrowing in the Eurobond market.

images Explain how large U.S. money center banks make and price Eurocredit loans to their customers and compute the cost of a Eurocredit bank ...

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