International Financial Management
Exam Questions
Exam Questions
Kartei Details
| Karten | 20 |
|---|---|
| Sprache | English |
| Kategorie | Finanzen |
| Stufe | Universität |
| Erstellt / Aktualisiert | 23.01.2022 / 23.01.2022 |
| Lizenzierung | Keine Angabe (Leipzig University) |
| Weblink |
https://card2brain.ch/box/20220123_international_financial_management
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| Einbinden |
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Money Markets vs. Capital Markets
Money Markets: the organized exchange on which participants can lend and borrow large sums of money for a period of one year or less
Capital Markets: long-term investing where issuing and trading stocks/bonds
Money markets + capital markets = financial market
Single Tier vs. Two Tier Corporate Structure
Single Tier: shareholders elect CEO; CEO reports to shareholders (more informal arrangement)
Two-Tier: institutionalized shareholder and supervisory body elect CEO; CEO reports to board of directors
A corporate bond entails which rights for an investor?
- a debt obligation (bond)
- semi-annual coupon payments; upon a coupon rate until bond expires
- upon expiration = face value is paid back
- paid back before shareholders: bonds are lower risk than equity
How can a corporate bond be valued?
1. calculate cash flows as per coupon rate per annum
2. calculate present value, using discount rate (PV = cash flow / 1 + discount rate)
3. add the new sum over time to find bond price today
