Applied international finance. I, Managing foreign exchange risk /
Managing foreign exchange risk
Thomas J. O'Brien.
- Second edition.
- 1 online resource (xiii, 143 pages)
- Finance and financial management collection, 2331-0057 .
- Finance and financial management collection. .
1. FX operating exposure -- 2. FX economic exposure -- 3. FX business and equity exposure -- 4. FX translation exposure -- 5. Foreign currency debt -- 6. Currency swaps -- Case study: Adventure and Recreation Technologies, Inc -- Appendix -- Notes -- References -- Index.
Access restricted to authorized users and institutions.
This volume is part of a three-volume set designed for use in a course in applied international corporate finance for managers and executives. Instead of the "encyclopedic" approach, the volumes focus on main issues of interest to managers who deal with overseas operations. This volume's issue is how uncertain foreign exchange (FX) rate changes affect a firm's ongoing cash flows and equity value, and what can be done about this risk. Numerous examples of real-world companies are used. The volume contains a hypothetical case that aims to tie the material together. The case company has overseas operations and is faced with ongoing FX exposure in corporate revenues. The decisionmaker estimates the FX exposure and considers financial hedging using foreign currency debt and currency swaps. The accounting implications are also considered. The volume reviews some basics of FX rates; for more information, see the first volume: Thomas J. O'Brien, Introduction to Foreign Exchange Rates, 2nd edition, Business Expert Press, 2016. The third volume deals with the estimation of the cost of capital for international operations and the evaluation of overseas investment proposals: Thomas J. O'Brien, Applied International Finance II: International Cost of Capital and Capital Budgeting, 2nd edition, Business Expert Press, 2017.
Mode of access: World Wide Web. System requirements: Adobe Acrobat reader.
9781947441293
International finance. Foreign exchange. Capital budget.
currency swaps foreign currency debt FX exposure FX translation exposure hedge accounting operational hedging