FIN 677 Ashford University International Finance Market Risk Discussion
PART A
ACME is considering cross listing its stock on another index. Select one of your targeted countries and research the listing requirements for foreign companies in that country.
Advise ACME on how to proceed by analyzing the strategic opportunities for international operations created by listing their stock on the major exchange in one of the countries you selected. Summarize the requirements for listing on the exchange for the country you chose, and develop a strategy for how to advise ACME, including the pros and cons of cross listing and the tradeoffs between risk and reward. Your post should be a minimum of 250 words.
PART B
Research the last six months of the stock index for the country you have selected for the acquisition on the Financial Times (Links to an external site.) website, in this case the United Kigndom. In a minimum of 250 words:
For your initial post, compare the performance of your chosen country’s stock index with the stock market indexes from various regions of the world.
Compare the performances and hypothesize what accounts for the differences.
Determine what factors you would consider before advising ACME on acquiring a company in your chosen country and formulate an approach that would help mitigate any market risk involved.
PART C
Prior to beginning work on this assignment, review the Interest Rate Swaps (Links to an external site.) article. Go to the ISDA SwapsInfo (Links to an external site.) website and review information on interest rate swaps.
You have just been informed that ACME plans to finance the acquisition with a combination of equity capital and debt. In a minimum of 500 words:
In your post, apply appropriate principles of valuation to design an interest rate swap for ACME to use in the acquisition.
In an email to ACME’s management team, explain the swap and recommend the best option available to ACME.
Outline how the swap will influence the integration and restructuring of the international acquisition target.
Close your email by acknowledging any risk associated with the swap, and assuring management that the benefits of your swap will outweigh any detriments.
PART D
Prior to beginning work on this question, go to the Current and Historical Rate Tables (Links to an external site.) website and check the current value of the Israeli Shekel.
In your post, and report the value of your selected currency. Why do you think the currency changed value? Describe your rationale. Examine how this change would impact international operations. Be sure to respond to at least two classmates with substantive responses prior to the end of the learning week.FIN
