Lecture Multinational financial management - Topic 1: Introduction to multinational finance

Finance 407: Multinational Financial Management 1 Topic #1: Introduction to multinational finance L. Gattis The Pennsylvania State University Problems 2 (Topic 8) Suppose the spot Mexican peso is P12.5 – P12.6 and one year forward market is 12.8­ 12.9. Mexican investing and borrowing interest rates are 8­10%. U.S. investing and borrowing interest rates are 1­3%. The Mexican credit default swap (CDS) market rate is 150bps­ 175bps. What are your USD covered interest arbitrage profits with a CDS borrowing $100,000 in the U.S. and investing pesos? (Topic 14) Bayer Material Science division is considering an investment in Chile. The project would cost 100,000 Chilean pesos today and is Polls 3 ­ Turn on iclicker, hold power until blinking, press DD to set classroom frequency I. I have used clickers in the classroom A. True: I have used iclickers B. False: I have NOT used iclickers II. Previous iclicker experience C. Favorable view of iclickers in the classroom D. Negative view of iclickers in the classroom Learning Objectives and Agenda 4 Agenda Syllabus Review PowerPoint #1 Learning Objective Students understand the course learning objectives, requirements, and methods Students understand what globalization is and how it affects financial managers. Finance Careers 5 Areas Industries Objective Names Retail Financial Services Retail Banking; Mortgage; Fin. Advising; Credit Cards Maximize fees and net interest income while limiting risk Bank of America, MBNA, M&T Bank, Capital One, UBS, PNC Bank Investment Management Mutual Funds, Pension, Hedge Funds, Investment Banking Maximize funds under mgmt, fees and risk-adj. returns Goldman, T. Rowe Price, Fidelity, Legg Mason, J.P. Morgan Corporate Finance All Select, finance, and manage value-creating projects J&J, IBM, Lockheed Martin, GE, P&G 5 ... - tailieumienphi.vn