Reference no: EM131359919
Corporate and Global Finance
Assignment: Discussion-Corporate Financial Structure
Though corporate capital structure (also called capitalization) and corporate financial structure are closely related, they do have some significant differences. Financial structure is determined from the full liabilities and equity position on the firm's balance sheet, looking at the total liabilities, both long- and short-term and the equity used to fund the organization. Whereas corporate capital structure looks at the mix of equity and long-term liabilities-primarily debt. In other words, capitalization is the portion of funds raised by selling shares and financial structure is the portion raised by selling bonds.
Determining the optimal financial or capital structure for a domestic U.S. firm requires in-depth analysis of a variety of factors. For multinational or global firms, the analysis can be much more complex than for domestic business organizations.
As a member of the finance team for the MNC Getting Bigger All The Time, Inc. (GBATT ), you have been asked by the Chief Financial Officer (CFO) to lead a general discussion on some of the complications and different risks in capitalizing an MNC and managing its financial structure. The CFO has asked that you specifically cover the risks associated with currency denominations, economic and legal issues, and the different government roles.
The CFO recommended a couple of sites for gathering information.
• Organization for Economic Cooperation and Development (OECD) https://www.oecd.org
• International Monetary Fund (IMF) https://www.imf.org
Using the module readings, University online library resources, the Internet, and the sources cited above, do the following:
• Explain, with examples, how risks associated with currency denominations, economic and legal differences between countries, and the different governments' roles and attitudes toward business can affect MNCs' risks, capital structure and financial structure decisions.
Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation.
Workers compensation statutes
: What ethical difficulties, if any, arise out of the theory of "no-fault" workers' compensation statutes? Should an employee injured primarily by her own negligence receive the same benefit as one harmed through no fault of her own?
|
What is meant by improving patient adherence
: What is meant by improving patient adherence? Can health-related theories in psychology be used to predict who will and who will not adhere to medical advice? Why or why not
|
Does the protection of one domestic industry harm another
: Does the protection of one domestic industry harm another? Provide specific pro and con. After you provide pro/con which do you choose and why - Why does comparative advantage matter more than absolute advantage for trade?
|
Continuing education important for professionals
: Why is continuing education important for professionals in terms of individual and organizational success? Are you aware of any certifications or continuing education requirements (i.e., CLE) that may be required in your professional area? If so..
|
How risks associated with currency denominations
: B7530- How risks associated with currency denominations and legal differences between countries, and different governments' roles and attitudes toward business can affect MNCs' risks, capital structure and financial structure decisions.
|
The abu dhabi security exchange
: Select any FIVE assets listed on the Abu Dhabi Security Exchange. How change in a probability and level of confidence interval change the assets value position? How early day or later day in a month effect the value composition of your selected asset..
|
Explain five signs of child abuse
: As a human service professional, you will encounter crisis situations involving child abuse. For this Discussion, please identify and explain the following: Five (5) signs of child abuse. Your ethical and legal responsibilities related to child abu..
|
Draw the truth table for the following types of flip-flop
: a negative edge-triggered J-K flip-flop with active LOW J and K inputs and active LOW PRESET and CLEAR inputs.
|
What is meant by the race problem in flip-flops
: What is meant by the race problem in flip-flops? How does a master-slave configuration help in solving this problem?
|