Multinational Business Finance Eiteman 12th Edition Solutions Manual

Product details:

• ISBN-10 ‏ : ‎ 0136096689
• ISBN-13 ‏ : ‎ 978-0136096689
• Author: Eiteman Stonehill Moffett

Globalization and the Multinational Enterprise; Financial Goals & Governance; The International Monetary System; The Balance of Payments; Current Multinational Financial Challenges: Crisis; The Foreign Exchange Market
International Parity Conditions; Foreign Currency Derivatives; Interest Rate and Cross Currency Swaps; Foreign Exchange Rate Determination & Forecasting; Transaction Exposure; Operating Exposure; Translation Exposure; The Global Cost and Availability of Capital; Sourcing Equity Globally; Sourcing Debt Globally; International Portfolio Theory & Investment; Foreign Direct Investment Theory & Strategy; Multinational Capital Budgeting; Multinational Tax Management; Working Capital Management; International Trade Finance

Table contents:

PART I Global Financial Environment

1(136)

Globalization and the Multinational Enterprise

2(20)

Globalization and Creating Value in the Multinational Enterprise

3(1)

The Theory of Comparative Advantage

4(3)

What Is Different about Global Financial Management?

7(1)

Market Imperfections: A Rationale for the Existence of the Multinational Firm

8(1)

The Globalization Process

9(4)

Summary Points

13(9)

Mini-Case: Porsche Changes Tack

13(6)

Questions

Problems

Internet Exercises

19(3)

Financial Goals and Corporate Governance

22(28)

Who Owns the Business?

22(2)

What Is the Goal of Management?

24(4)

Corporate Governance

28(12)

Summary Points

40(10)

Mini-Case: Governance Failure at Enron

41(4)

Questions

Problems

Internet Exercises

45(5)

The International Monetary System

50(28)

History of the International Monetary System

50(6)

Contemporary Currency Regimes

56(6)

Emerging Markets and Regime Choices

62(2)

The Birth of a European Currency: The Euro

64(5)

Exchange Rate Regimes: What Lies Ahead?

69(1)

Summary Points

70(8)

Mini-Case: The Revaluation of the Chinese Yuan

71(3)

Questions

Problems

Internet Exercises

74(4)

The Balance of Payments

78(28)

Typical Balance of Payments Transactions

79(1)

Fundamentals of Balance of Payments Accounting

80(1)

The Accounts of the Balance of Payments

81(2)

The Capital and Financial Accounts

83(5)

The Balance of Payments in Total

88(3)

The Balance of Payments Interaction with Key Macroeconomic Variables

91(2)

Trade Balances and Exchange Rates

93(3)

Capital Mobility

96(3)

Summary Points

99(7)

Mini-Case: Turkey’s Kriz (A): Deteriorating Balance of Payments

99(2)

Questions

Problems

Internet Exercises

101(5)

Current Multinational Financial Challenges: The Credit Crisis of 2007-2009

106(31)

The Seeds of Crisis: Subprime Debt

106(3)

The Transmission Mechanism: Securitization and Derivatives of Securitized Debt

109(11)

The Fallout: The Crisis of 2007 and 2008

120(9)

The Remedy: Prescriptions for an Infected Global Financial Organism

129(2)

Summary Points

131(6)

Mini-Case: Letting Go of Lehman Brothers

132(2)

Questions

Problems

Internet Exercises

134(3)

PART II Foreign Exchange Theory and Markets

137(144)

The Foreign Exchange Market

138(26)

Geographical Extent of the Foreign Exchange Market

138(1)

Functions of the Foreign Exchange Market

139(1)

Market Participants

140(2)

Transactions in the Interbank Market

142(6)

Foreign Exchange Rates and Quotations

148(8)

Summary Points

156(8)

Mini-Case: The Venezuelan Bolivar Black Market

157(3)

Questions

Problems

Internet Exercises

160(4)

International Parity Conditions

164(33)

Prices and Exchange Rates

164(8)

Interest Rates and Exchange Rates

172(9)

Forward Rate as an Unbiased Predictor of the Future Spot Rate

181(2)

Prices, Interest Rates, and Exchange Rates in Equilibrium

183(1)

Summary Points

184(13)

Mini-Case: Currency Pass-Through at Porsche

185(1)

Questions

Problems

Internet Exercises

186(7)

An Algebraic Primer to International Parity Conditions

193(4)

Foreign Currency Derivatives

197(37)

Foreign Currency Futures

198(3)

Currency Options

201(2)

Foreign Currency Speculation

203(7)

Option Pricing and Valuation

210(3)

Currency Option Pricing Sensitivity

213(8)

Prudence in Practice

221(1)

Summary Points

222(12)

Mini-Case: Warren Buffett’s Love-Hate Relationship with Derivatives

223(3)

Questions

Problems

Internet Exercises

226(4)

Currency Option Pricing Theory

230(4)

Interest Rate and Currency Swaps

234(22)

Defining Interest Rate Risk

234(3)

Management of Interest Rate Risk

237(8)

Trident Corporation: Swapping to Fixed Rates

245(1)

Currency Swaps

246(1)

Trident Corporation: Swapping Floating Dollars into Fixed Rate Swiss Francs

247(2)

Counterparty Risk

249(1)

Summary Points

250(6)

Mini-Case: McDonald’s Corporation’s British Pound Exposure

251(1)

Questions

Problems

Internet Exercises

252(4)

Foreign Exchange Rate Determination and Forecasting

256(25)

Exchange Rate Determination: The Theoretical Thread

257(3)

The Asset Market Approach to Forecasting

260(2)

Disequilibrium: Exchange Rates in Emerging Markets

262(1)

Illustrative Case: The Asian Crisis

262(3)

Illustrative Case: The Argentine Crisis of 2002

265(5)

Forecasting in Practice

270(4)

Summary Points

274(7)

Mini-Case: JPMorgan Chase’s Forecasting Accuracy

274(2)

Questions

Problems

Internet Exercises

276(5)

PART III Foreign Exchange Exposure

281(84)

Transaction Exposure

282(38)

Types of Foreign Exchange Exposure

282(2)

Why Hedge?

284(3)

Measurement of Transaction Exposure

287(2)

Trident’s Transaction Exposure

289(8)

Management of an Account Payable

297(2)

Risk Management in Practice

299(1)

Summary Points

300(20)

Mini-Case: Xian-Janssen Pharmaceutical (China) and the Euro

301(2)

Questions

Problems

Internet Exercises

303(9)

Complex Options

312(8)

Operating Exposure

320(24)

Attributes of Operating Exposure

320(2)

Illustrating Operating Exposure: Trident

322(4)

Strategic Management of Operating Exposure

326(3)

Proactive Management of Operating Exposure

329(7)

Contractual Approaches: Hedging the Unhedgeable

336(1)

Summary Points

337(7)

Mini-Case: Toyota’s European Operating Exposure

338(2)

Questions

Problems

Internet Exercises

340(4)

Translation Exposure

344(21)

Overview of Translation

344(3)

Translation Methods

347(3)

Translation Example: Trident Europe

350(5)

Comparing Translation Exposure with Operating Exposure

355(1)

Managing Translation Exposure

355(4)

Summary Points

359(6)

Mini-Case: LaJolla Engineering Services

360(2)

Questions

Problems

Internet Exercises

362(3)

PART IV Financing the Global Firm

365(66)

The Global Cost and Availability of Capital

366(25)

Weighted Average Cost of Capital

368(5)

The Demand for Foreign Securities: The Role of International Portfolio Investors

373(6)

The Cost of Capital for MNEs Compared to Domestic Firms

379(1)

Solving a Riddle: Is the Weighted Average Cost of Capital for MNEs Really Higher Than for Their Domestic Counterparts?

380(2)

Summary Points

382(9)

Mini-Case: Novo Industri A/S (Novo)

383(4)

Questions

Problems

Internet Exercises

387(4)

Sourcing Equity Globally

391(19)

Designing a Strategy to Source Equity Globally

392(3)

Foreign Equity Listing and Issuance

395(2)

Effect of Cross-Listing and Equity Issuance on Share Price

397(2)

Barriers to Cross-Listing and Selling Equity Abroad

399(1)

Alternative Instruments to Source Equity in Global Markets

400(4)

Summary Points

404(6)

Mini-Case: Petrobras of Brazil and the Cost of Capital

404(4)

Questions

Problems

Internet Exercises

408(2)

Sourcing Debt Globally

410(21)

Optimal Financial Structure

410(1)

Optimal Financial Structure and the MNE

411(3)

Financial Structure of Foreign Subsidiaries

414(4)

International Debt Markets

418(6)

Summary Points

424(7)

Mini-Case: Tirstrup BioMechanics (Denmark): Raising Dollar Debt

424(2)

Questions

Problems

Internet Exercises

426(5)

PART V Foreign Investment Decisions

431(82)

International Portfolio Theory and Diversification

432(20)

International Diversification and Risk

432(3)

Internationalizing the Domestic Portfolio

435(6)

National Markets and Asset Performance

441(5)

Summary Points

446(6)

Mini-Case: Is Modern Portfolio Theory Outdated?

447(1)

Questions

Problems

Internet Exercises

448(4)

Foreign Direct Investment Theory and Political Risk

452(35)

Sustaining and Transferring Competitive Advantage

452(3)

The OLI Paradigm and Internalization

455(2)

Deciding Where to Invest

457(1)

How to Invest Abroad: Modes of Foreign Involvement

458(4)

Foreign Direct Investment Originating in Developing Countries

462(2)

Foreign Direct Investment and Political Risk

464(1)

Assessing Political Risk

465(1)

Firm-Specific Risks

466(3)

Country-Specific Risks: Transfer Risk

469(3)

Country-Specific Risks: Cultural and Institutional Risks

472(4)

Global-Specific Risks

476(3)

Summary Points

479(8)

Mini-Case: Mattel’s Chinese Sourcing Crisis of 2007

480(3)

Questions

Problems

Internet Exercises

483(4)

Multinational Capital Budgeting

487(26)

Complexities of Budgeting for a Foreign Project

488(1)

Project versus Parent Valuation

489(1)

Illustrative Case: Cemex Enters Indonesia

490(12)

Real Option Analysis

502(1)

Project Financing

503(2)

Summary Points

505(8)

Mini-Case: Trident’s Chinese Market Entry—An Application of Real Option Analysis

505(2)

Questions

Problems

Internet Exercises

507(6)

PART VI Managing Multinational Operations

513(77)

Multinational Tax Management

514(21)

Tax Principles

514(8)

Transfer Pricing

522(2)

Tax Management at Trident

524(1)

Tax Haven Subsidiaries and International Offshore Financial Centers

525(2)

Summary Points

527(8)

Mini-Case: Stanley Works and Corporate Inversion

527(4)

Questions

Problems

Internet Exercises

531(4)

Working Capital Management

535(30)

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