Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. MNC Financing. The MNC will need financing to purchase the product or raw material from the new supplier. (A) Discuss the amount of financing

image text in transcribed
image text in transcribed
image text in transcribed
2. MNC Financing. The MNC will need financing to purchase the product or raw material from the new supplier. (A) Discuss the amount of financing needed, explain how you arrived at the amount and how it will be spent. (B) Discuss the options for financing as discussed in class/lecture notes (bonds, stock, and bank). (C) You will choose financing from the bank. Discuss why the option is most suited for your MNC. (D) Explain how your bank can protect itself from asymmetric information? (E) Explain the role of financial report and how does it help financial institutions and investors when analysing a financial decision? You will be required to do the following: o Evaluate the financial need of your MNC and choose the most cost-effective way to finance your purchase. o Examine the existing markets and evaluate the strengths and weakness of your MNC. o Analyze the risk of entering a foreign market. o Conduct a research and review the performance of your MNC, the corporation stock being monitored over the last 2 years and monitor the stock for the last 12 months. o Explain the performance of the corporation and why it performs well or poorly relative to the overall market index. o Research and explanations should provide some insight into what is driving the valuation of a corporation over time and how the MNC protects its value. o Conduct corporation research on sites like: www.msn.com, Yahoo Finance, Google Finance, Market Watch, Morningstar, Seeking Alpha, Financial Post, CNBC.com and Bloomberg. Points to Note This project allows you to learn more about international investing and about firms that compete in the global arena. You will be assigned a Canadian or USA company to run. The focus is to extend the company's product line. You are required to identify an international supplier to purchase a product or raw material to meet this goal. You will also be assigned a USA or Canadian multinational corporation (MNC), for which you are required to monitor the company's stock. 2. MNC Financing. The MNC will need financing to purchase the product or raw material from the new supplier. (A) Discuss the amount of financing needed, explain how you arrived at the amount and how it will be spent. (B) Discuss the options for financing as discussed in class/lecture notes (bonds, stock, and bank). (C) You will choose financing from the bank. Discuss why the option is most suited for your MNC. (D) Explain how your bank can protect itself from asymmetric information? (E) Explain the role of financial report and how does it help financial institutions and investors when analysing a financial decision? You will be required to do the following: o Evaluate the financial need of your MNC and choose the most cost-effective way to finance your purchase. o Examine the existing markets and evaluate the strengths and weakness of your MNC. o Analyze the risk of entering a foreign market. o Conduct a research and review the performance of your MNC, the corporation stock being monitored over the last 2 years and monitor the stock for the last 12 months. o Explain the performance of the corporation and why it performs well or poorly relative to the overall market index. o Research and explanations should provide some insight into what is driving the valuation of a corporation over time and how the MNC protects its value. o Conduct corporation research on sites like: www.msn.com, Yahoo Finance, Google Finance, Market Watch, Morningstar, Seeking Alpha, Financial Post, CNBC.com and Bloomberg. Points to Note This project allows you to learn more about international investing and about firms that compete in the global arena. You will be assigned a Canadian or USA company to run. The focus is to extend the company's product line. You are required to identify an international supplier to purchase a product or raw material to meet this goal. You will also be assigned a USA or Canadian multinational corporation (MNC), for which you are required to monitor the company's stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books