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Currently you are CFO of a major Australia-based MNC. Due to the on-going COVID-19 pandemic situation, the Australian economy faced major impacts to its economy.
Currently you are CFO of a major Australia-based MNC. Due to the on-going COVID-19 pandemic situation, the Australian economy faced major impacts to its economy. Given below are some specific aspects of the effects of the pandemic. Explain how you will manage each of these situations. Your responsibilities include managing economic and transaction exposures, raising financial capital and advising the CEO regarding pricing and currency denomination for exports and imports. You may treat each of these situations independently. (a) Global gas prices have declined substantially. Your company is a major user of Australian gas. (b) Your company invests in overseas companies paying high dividends. Due to COVID-19, foreign companies have reduced their dividend payouts. (c) Crude oil prices reduce substantially due to lower global demand. Your company is an importer of foreign crude oil. The imports are denominated in USD which has appreciated with respect to the AUD. (d) The major export markets of your company have suffered a substantial depreciation in their currency rates compared to the AUD. (e) The stock price of the company has been increasing both in ASX and in NYSE (where the firm has listed its level 2 ADR). Currently you are CFO of a major Australia-based MNC. Due to the on-going COVID-19 pandemic situation, the Australian economy faced major impacts to its economy. Given below are some specific aspects of the effects of the pandemic. Explain how you will manage each of these situations. Your responsibilities include managing economic and transaction exposures, raising financial capital and advising the CEO regarding pricing and currency denomination for exports and imports. You may treat each of these situations independently. (a) Global gas prices have declined substantially. Your company is a major user of Australian gas. (b) Your company invests in overseas companies paying high dividends. Due to COVID-19, foreign companies have reduced their dividend payouts. (c) Crude oil prices reduce substantially due to lower global demand. Your company is an importer of foreign crude oil. The imports are denominated in USD which has appreciated with respect to the AUD. (d) The major export markets of your company have suffered a substantial depreciation in their currency rates compared to the AUD. (e) The stock price of the company has been increasing both in ASX and in NYSE (where the firm has listed its level 2 ADR)
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