Should an mnc borrow primarily short term

Assignment Help Financial Management
Reference no: EM131115978

Should an MNC borrow primarily short term when short-term interest rates are lower than long-term interest rates? Or should it keep the maturity the same but use a floating- ate loan rather than a fixed-rate loan? Explain

Reference no: EM131115978

Questions Cloud

Who is harmed if the estimates are increased : Who is harmed if the estimates are increased? Should Hamilton follow his boss's directive?
What are the two main segments of the international bond : What are the two main segments of the international bond market, and what types of regulations apply to them?
What is financial disintermediation : What is financial disintermediation?
How should constantine report the suit in its 2010 : How should Constantine report the suit in its 2010 financial statements? Discuss the rationale for your answer. Include in your answer disclosures, if any that should be made in Constantine's financial statements or notes.(AICPA adapted)
Should an mnc borrow primarily short term : Should an MNC borrow primarily short term when short-term interest rates are lower than long-term interest rates? Or should it keep the maturity the same but use a floating- ate loan rather than a fixed-rate loan? Explain
What forms will be used when and how often : Why was it chosen? What objectives will it achieve? Detail the media plan: What forms will be used, when, and how often?
Develop a marketing plan for a brand iphone : Develop a marketing plan for a brand or product of your choice that will be launching in 2016 in United Kingdom. You are required to write a 1,250 word essay
What is a centralized and decentralized debt denomination : What is the difference between a centralized and decentralized debt denomination for an MNC?
What conditions must exist before a loss contingency : What conditions must exist before a loss contingency can be recorded in the accounts?

Reviews

Write a Review

Financial Management Questions & Answers

  Compare the hedging alternatives for the eur receivables

Compare the hedging alternatives for the EUR receivables with a scenario under which Yankee remains unhedged and Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged -Do you think Yankee should hedge or r..

  Using the sales-based inventory turnover ratio

Mall Toys Co. has a quick ratio of 2.00x, $32,175 in cash, $17,875 in accounts receivable, some inventory, total current assets of $71,500, and total current liabilities of $25,025. The company reported annual sales and cost of goods sold of $300,000..

  This project involves researching and writing a short

this project involves researching and writing a short research paper on your choice of kaizen or balanced score card.

  The accounting break-even production quantity for a project

The accounting break-even production quantity for a project is 5,799 units. The fixed costs are $92,640, the depreciation is $36,210, and the sales price per unit is $48.29. What is the variable cost per unit?

  Scenario 1energy inc energy which operates in the oil

scenario 1energy inc. energy which operates in the oil industry is a u.s. subsidiary of a u.k.entity that prepares its

  Finding the optimal capital balance seems quite nebulous

It seems clear that more debt leads to more risk, which is bad, but more debt also leads to higher expected returns, which is good. However, finding the optimal capital balance seems quite nebulous. Moreover, the textbook indicates that capital struc..

  The efficient set of portfolios

The efficient set of portfolios

  Find the duration of the plans obligations

A pension plan is obligated to make disbursements of $1.4 million, $2.4 million, and $1.4 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 8% annually.

  Debt outstanding-interest and interest tax shield

Digital Organics (DO) has the opportunity to invest $0.90 million now (t = 0) and expects after-tax returns of $500,000 in t = 1 and $600,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 12% with all-equity f..

  Operations comparable to this project have unlevered betas

Stackhouse Industries has a new project available that requires an initial investment of $5.5 million. The project will provide unlevered cash flows of $775,000 per year for the next 20 years. The companies with operations comparable to this project ..

  Calculate the current value of pension

Peter is about to retire from a company in which he worked for 24 years. Peter participated in Defined Benefit Plan which uses Unit Credit Formula (2.4% of average of 3 highest salaries multiplied by number of years of services). The three highest sa..

  What will be effect on cash flows of this sale

Suppose you sell a fixed asset for $50,000 when its book value is $60,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd