With focus on the corporate perspective
In this particular chapter, you will get a small insight into the world of finance in the international market. Everything is observed from the view point of a CFO who is domesticated in nature. This person usually deals from a certain distance with different kinds of sales, discounts offered to people or working on the manner to increase the capital generated in the foreign countries. When a particular company from the US becomes multinational in stature, there are a number of problems which increases along with the growth of the company. The different procedures of marketing the products of the company as well as hiring of different people for working in the company change. You will also find it difficult to cope with the varied rules for keeping accounts as well as making deals with your suppliers in the foreign countries. However all these issues do not strictly fall under the category of corporate finance, hence these issues will not be dealt with in this particular chapter. Different company managers while in the foreign lands, can face lots of irksome dealings too. There will be too many new kinds of problems for them to tackle. As a n example you will see that in many markets of Europe, the value for the shareholder as well as the stakeholder has to be made maximum.
For all those firms from US which are expanding and spreading to other countries, there is one common problem prevalent everywhere. This problem arises owing to differences in currencies. The US in itself is a highly developed country and hence it can treat the different companies in other developed countries in the same manner as the home companies are handled. In this manner some of the problems as well as their solutions may seem to be similar for you. The problem of currency usually spreads into and affects many places concerned with finance such as trading circuit, investment of foreign currency as well as setting capital for the budget. These are the few topics which will be dealt with in this chapter.
Links of Previous Main Topic:-
- Introduction of corporate finance
- The time value of money and net present value
- Stock and bond valuation annuities and perpetuities
- A first encounter with capital budgeting rules
- Working with time varying rates of return
- Uncertainty default and risk
- Risk and return risk aversion in a perfect market
- Investor choice risk and reward
- The capital asset pricing model
- Market imperfections
- Perfect and efficient markets and classical and behavioral finance
- Capital budgeting applications and pitfalls
- From financial statements to economic cash flows
- Valuation comparables financial ratios
- Corporate claims
- Capital structure and capital budgeting in a perfect market
- The weighted cost of capital and adjusted present value in an imperfect market with taxes
- What matters
- Equity payouts
- For value financial structure and corporate strategy analysis
- Capital structure dynamics firm scale
- Capital structure patterns in the united states
- Investment banking and mergers and acquisitions
- Corporate governance
Links of Next Financial Accounting Topics:-
