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Interest rates

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For short-term and medium-term financing: Local market or Eurocurrency market (for corporations and government ; Eurocurrency: USD deposited outside the USA. ie. petrodollars). Loans are made on a floating-rate basis, for example the LIBOR (they use treasury bills, mini=10 000 USD). There are sometimes differences of quotations with the domestic market, that entails arbitrages.
Interest-rate parity theorem. Valid in the USA and other western countries: if interest rates are higher domestically than in a particular foreign country, the foreign currency will be selling at a discount in the forward market.
For long term: American multinationals are the most akin to foreign direct investment. The American Depository receipt (ADR) is a security issued and traded in the United states to represent shares of a foreign stock.


Currency issues >>


Corporate finance

The subject: corporate finance

PART ONE: CAPITAL EXPENDITURE
The present value
Investment decisions
Practical problems in capital budgeting
Firms evaluation

PART TWO. BASICS OF FINANCE
The financial markets
Options
The market efficiency
Risk
Mergers, Acquisitions, and Corporate Control
International Financial Management

PART THREE FINANCING DECISIONS
Corporate financing
Dividend policy and capital structure

PART FOUR FINANCIAL MANAGEMENT
Financial planning
Short-term financial management


Courses created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.