Multinational Business Finance, 16th edition David K. Eiteman – Test Bank

Multinational Business Finance prepares the future leaders of multinational enterprises to recognize and capitalize on the unique characteristics of global markets. As the role of a manager is to make financial decisions that enhance a firm’s value, the authors have incorporated real-world mini-cases throughout, applying chapter concepts to the types of scenarios managers of real multinational companies face.

The 16th Edition aims to capture the rapid evolution of our global market. It delves deeper into the types of organizations that permeate the common arena, competition, and opportunities in emerging markets. It also explores how financial management can integrate the strategic and financial challenges that multinational companies confront today.

Table of Contents

PART I: GLOBAL FINANCIAL ENVIRONMENT

1. Challenges and Opportunities in Multinational Financial Management
2. Global Financial System
3. The Balance of Payments
4. Financial Objectives, Corporate Governance and the Marketplace for Corporate Management

PART II: FOREIGN EXCHANGE THEORY & MARKETS

5. The Global Foreign Exchange Market
6. International Parity Conditions

• Appendix: An Algebraic Primer to International Parity Conditions

7. Global Currency Derivatives: Futures & Options

• Appendix: Currency Option Pricing Theory

8. Interest Rate Risk and Swaps
9. Global Exchange Rate Determination & Intervention

PART III: FOREIGN EXCHANGE EXPOSURE

10. Transaction Exposure

• Appendix A: Complex Option Hedges
• Appendix B: The Optimal Hedge Ratio and Hedge Effectiveness

11. Translation Exposure
12. Operating Exposure

PART IV: FINANCING THE GLOBAL FIRM

13. Global Cost and Availability of Capital
14. Funding the Multinational Firm
15. Multinational Tax Management
16. International Trade Finance

PART V: FOREIGN INVESTMENTS AND INVESTMENT ANALYSIS

17. Foreign Direct Investment & Political Risk
18. Multinational Capital Budgeting & Cross-Border Acquisitions

• Solutions to select end-of-chapter problems