1. Equity Cost and Risk: What are the classifications used in defining risk in the estimation of a firm's cost of equity?
2. International Portfolio Management: Discuss the main advantage that international portfolio managers have compared to portfolio managers limited to domestic-only asset allocation.
3. Dimensions of Asset Allocation: Portfolio asset allocation can be accomplished along many dimensions depending on the investment objective of the portfolio manager. Identify the various dimensions.
4. Global Equity Alternatives: Discuss the alternative structures available for raising equity capital on the global market.
5. Cross-Listing Abroad: Discuss the main reasons causing firms to cross-list abroad.
6. International Debt Instruments: Discuss each of the five primary alternative instruments available for raising debt on the international marketplace.
7. Primary Objective: What is the primary objective of multinational tax planning? What contributes to the importance of this objective?
8. Tax Mortality: What is meant by the term "tax mortality"? If, for example, your company has a subsidiary in Russia where some believe tax evasion is a fine art, should you comply with Russian tax laws or violate the laws as do local competitors? Explain and justify your reasoning. Support your reasoning with source documentation.
9. Tax Types: Taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. Identify each of the following as a "direct tax," an "indirect tax," or something else:
10. Corporate income tax paid by a Japanese subsidiary on its operating income
11. Royalties paid to Saudi Arabia for oil extracted and shipped to world markets
12. Interest received by a U.S. parent on bank deposits held in London
13. Interest received by a U.S. parent on a loan to a subsidiary in Mexico
14. Principal repayment received by U.S. parent from Belgium on a loan to a wholly owned subsidiary in Belgium
15. Excise tax paid on cigarettes manufactured and sold within the United States
16. Property taxes paid on the corporate headquarters building in Seattle
17. A direct contribution to the International Committee of the Red Cross for refugee relief
18. Deferred income tax, shown as a deduction on the U.S. parent's consolidated income tax
19. Withholding taxes withheld by Germany on dividends paid to a United Kingdom parent corporation
20. Fund Positioning: Describe fund positioning and discuss its importance.