Question
ABC Corporation is a listed company in the business of manufacturing industrial equipment, and is domiciled in Zambia. The Financial Manager of ABC Corporation has
ABC Corporation is a listed company in the business of manufacturing industrial equipment, and is domiciled in Zambia. The Financial Manager of ABC Corporation has identified two projects to finance for the next five years. One project is in Australia and the other project is in Zambia. The total funding required for the Australian and Zambian Project is AUD5 Million, and K35 Million Kwacha respectively. Based on the above information, answer the following questions:
A. Discuss the primary funding sources and instruments available for the Financial Manager to finance these two projects
B. Discuss the potential implications of exchange rate movements, and domestic and global interest rate changes on the cash flows associated with both of these projects, and the subsequent financial performance of ABC Corporation
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