Task: Expanding and investing in projects overseas with focuses on ROE, IRR, and ROI
Problem 1: How is return on equity (ROE) defined and what is the importance of understanding the return on equity (ROE) as it applies to international financing? What would the strengths and weaknesses be?
Problem 2: How is internal rate of return (IRR) defined and what is the importance of understanding the internal rate of return (IRR) as it applies to international financing? What would the strengths and weaknesses be?
Problem 3: When selecting two companies from the same industry and using the most current annual report information available on the company's website how is the ROE computed for each?
Problem 4: When selecting the same two companies from the same industry and using the most current annual report information available on the company's website how is the ROI computed for each?
Problem 5: How can the ROE and the ROI of these companies be compared and described?
The objective is to understand the forces of globalization and its implications for the multinational firm and to recognize financial management decisions of multinational firms.