International Financial Calculations

Problem #2: Citibank offers to syndicate a Eurodollar credit for the government of Poland with the following terms: Principal U.S.$1,000,000,000 Maturity 7 years Interest rate LIBOR + 1.5 percent, reset every six months Syndication fee 1.75 percent a. What are the net proceeds to Poland from this syndicated loan? b. Assuming that six-month LIBOR is currently at 6.35 percent, what is the effective annual interest cost to Poland for the first six months of this loan? ________________________________________ Problem #7: Apex Supplies borrows £1 million at 12 percent, payable in one year. If Apex is required to maintain a compensating balance of 20 percent, what is the effect... click for more

Foreign Market Beta

Suppose that the standard deviations of the British and U.S. stock markets have risen to 38 percent and 22 percent, respectively, and the correlation between the U.S. and British markets has risen to 0.67. What is the new beta of the British market from a U.S. perspective?

International Risk Factors

Please provide a brief explanation of how the following international risk factors affect the United States real estate industry: International political risk Foreign exchange rate risk Economic risk

Internet companies

Despite the difficulties, many technology companies experienced when the dot-com bubble burst - Internet commerce (e-business) is here to stay. What resources does an International Internet retailer need other than merely a storefront on the Internet? Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain. Use the following companies (Yahoo, Google, EBay, AOL, or other internet companies you may be aware of) and explain why it is so successful despite the failures of other dot.com organizations. Explain what you think made this company so successful.

International Trade

1. Why are the industrialized countries the major source of FDI? 2. Why is there so little FDI in Japan? 3. Has NAFTA been a success? Explain 4. Compare and Contrast NAFTA and EU