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DRIVE Winter 2014
PROGRAM-MBADS (SEM
4/SEM 6)
MBAFLEX/ MBAN2 (SEM 4) PGDFMN
(SEM 2)
SUBJECT CODE & NAME-MF0015
& INTERNATIONAL FINANCIAL MANAGEMENT
BK ID-B1759
CREDIT & MARKS-4
Credits, 60 marks
Q1. Discuss the goals
of international financial management. 10
Answer: Goals of International Financial management: Effective financial management is not limited to the
application of the latest business techniques or functioning more
efficiently but includes maximization of wealth meaning that it aims to
offer profit to the shareholder, the owners of the businesses and to
ensure that they gain benefits from the business decisions that have
been
Q2. The key component
of the financial system is the money market that acts as a fulcrum of monetary
operations. Write down the important points under each category mentioned
below.
a) Functions performed
by money market
b) International
interest rates
c) Standardized Global
Market regulations.
(Explanation of
important points of functions performed by money market, Explanation of international
interest rates, Explanation of standardized global market regulations)3,3,4
Answer.
a) Functions performed
by money market
There
are three broad functions that are performed by the money market.
1.
For the demand and supply of short term funds, the money market provides an
equilibrating mechanism.
2.
It helps the lenders and the borrowers of the short term funds in fulfilling the
borrowing and
Q3. Thousands of years
back the concept of bartering between parties was prevalent, when the concept of
money had not evolved. Explain on counter trade with examples
(Introduction of
counter trade, Explanation of Different forms of counter trade, Examples) 3, 5,
2
Answer.
Counter trade
When
the concept of money had not evolved. A person could give say 100 bags of wheat
and get wood or coal, a certain quantity for cooking. These bartering contracts
were between individuals or small kingdoms. Bartering exists today also but at
different level. For example, Iran may give 100 million barrels of oil to France
and get 5000 guns of certain type in exchange. We can say that
Q4. There are different
techniques of exposure management. One is the Managing Transaction Exposure and
the other one is the managing operating exposure, So you have to explain on
both Managing Transaction Exposure and Managing Operating Exposure.
(Explanation of
Managing transaction exposure, Explanation of Managing operating exposure )5,5
Answer.
Managing transaction
exposure
Transaction exposure calculates gains or losses
which occur after the current financial compulsions according to terms of
reference are resolved. Taken that the deal would lead to a future inflow or
outflow of foreign currency cash, any unprecedented alterations in rate of
exchange amid the period in which transaction is entered and the time taken for
it to settle in cash would guide to a change in
Q5. Every firm is going
on concern, whether domestic or MNC. Explain the techniques of capital
budgeting and the steps to determine cash flows.
(Explanation of
techniques of capital budgeting-NPV, IRR , PI , Payback period, Determination
of cash flow)5,5
Answer.
Techniques of capital
budgeting-NPV, IRR , PI , Payback period
There
are many techniques which can be used to analyze the projects. These techniques
can be broadly classified into discounted cash flow techniques, which include
net present value (NPV), internal rate of return (IRR), profitability index
(PI) and discounted payback methods, and non-
Q6. Write short note
on:
a)
American Depository Receipts(ADR)
b)
Global Depository Receipts(GDR)
(Explanation of ADR, Explanation
of GDR) 5, 5
Answer.
American Depository
Receipts(ADR)
It
represents ownership in the shares of a non-US company and trades in the American
stock markets. ADRs enable American investors to buy shares in foreign company
without any issue of cross-border and cross-currency transactions. ADRs carry
price in American dollar, pay dividend in
Get fully solved assignment. Buy online from website
online store
or
plz drop a
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we will revert you within 2-3 hour or immediate
Charges rs 125/subject and rs 700/semester only.
if urgent
then call us on 08791490301, 08273413412
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