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MNC: Motorcycle Protective Gear
Country: Vietnam
Resources
Read/review the following resources for this activity:
Introduction
Continuing your creation of a MNC, consider the decisions that you made in previous weeks and add to your company using the prompts below.
Activity Instructions
Provide answers to the following MNC components using both information and concepts from the text as well as outside research to support your statements and probable MNC success. You might organize your paper using the headings and statements below to make sure you include all of the appropriate information.
Deriving a Required Rate of Return for an International Project
Estimating Cash Flows of an International Project
Writing Requirements (APA format)
Week 4 Lecture
FIN616 International Financial Management
Lecture
Introduction
When financial managers of domestic firms complete capital budgeting analysis they must consider major objectives such as sales forecasts, cost forecasts, discount rate calculations (including added risk and required rate of return), etc. International financial managers within MNCs must consider not only all of these factors, but also tax differentials, exchange rate fluctuations, inflation, financing arrangements, uncertain sales and salvage value forecasts, etc. During this week we will expand upon the capital budgeting process learned in corporate finance and add international elements and considerations.
One of the basic fundamentals of corporate finance is that the main goal of financial managers is to maximize shareholder wealth. One way in which a corporation can ensure that shareholder wealth is maximized (rather than the maximization of current profits to increase the salary of top managers) is to have a strong corporate governance policy enacted. We will discuss ways in which MNCs can incorporate a strong corporate governance policy in all subsidiaries to ensure corporate wide maximization of shareholder wealth.
Last modified: Thursday, 7 August 2014, 10:27 AM
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