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International Finance
Dec 2025 Examination
Q1. A large Indian
conglomerate is planning a major overseas expansion and needs to raise $1
billion in long-term capital. The CFO is evaluating whether to source funds
through international equity markets (via GDRs/ADRs) or international debt
markets (via Eurobonds or syndicated loans). The company operates in multiple
countries, faces fluctuating exchange rates, and is concerned about the impact
of market segmentation and integration on its cost of capital. The CFO must
decide the best financing mix to minimize risk and optimize capital structure.
Based on the scenario, how should the CFO apply international finance theories
to determine the optimal mix of debt and equity when raising capital from both
domestic and international markets, considering factors such as market
segmentation, cost of capital, and currency risk? (10 Marks)
Q2. A mid-sized Indian
manufacturing company is planning to expand its operations into Europe and
North America. The CFO is tasked with raising $200 million in long-term capital
and is considering two options: issuing Eurobonds in the London market or
launching a depository receipt (DR) program to list shares on a US stock
exchange. The company has limited experience with international capital
markets, and the board is concerned about currency risk, regulatory compliance,
investor base diversification, and the impact on the firm''s cost of capital.
The CFO must present a recommendation to the board, weighing the pros and cons
of each financing route. Evaluate the decision-making process of a mid-sized
Indian manufacturing company considering raising long-term capital for overseas
expansion. The CFO is debating between issuing Eurobonds in London or opting
for a depository receipt program in the US. Critically assess the strategic,
regulatory, and risk management factors that should influence the choice, and
justify which route would be more advantageous under current global market
conditions. (10 Marks)
Q3 (A). A multinational
enterprise with subsidiaries in several countries is struggling with fragmented
cash management practices, leading to inefficiencies and increased financial
risk. The company operates in multiple currencies and must comply with diverse
financial regulations. The CFO wants to implement a new global cash management
system that optimizes liquidity, minimizes currency risk, and ensures
regulatory compliance, while also supporting the company''s strategic growth
objectives. Design a global cash management system for a multinational
enterprise operating in multiple currencies and jurisdictions. Your system
should address centralized versus decentralized cash management, efficient
handling of surplus cash, and compliance with international financial
regulations. How would your design support both operational efficiency and
strategic financial flexibility? (5 Marks)
Q3 (B). A successful
domestic company in India is planning to raise capital by listing its shares on
a major international stock exchange. The management is unfamiliar with
international accounting standards, cross-listing procedures, and the
expectations of foreign institutional investors. Additionally, the company
faces regulatory hurdles and market segmentation that could limit its access to
global capital. The board expects a strategic plan that addresses these
challenges and ensures a successful international equity issue. Develop a
strategic plan for a domestic company seeking to access international equity
markets for the first time. Outline the steps for cross- listing shares,
complying with international accounting standards, and attracting foreign
institutional investors. What innovative measures would you implement to
overcome market segmentation and regulatory barriers? (5 Marks)
Dear students, get fully
solved assignments by professionals
Do send your query at :
or call us at :
08263069601
(Plagiarism proofed
assignments available with 100% surety and refund)
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