Describe factors that contribute to foreign exchange risk


1) You stated that " In case the company has never issued equity to the public, then it is referred to as an IPO." Please elaborate more on this statement. Just curious; would you buy stocks now?

What is the formula for the after tax cost of debt (bonds)?

2) What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization? How may an organization that needs Euros in 6 months protect itself from currency fluctuations? What is the current rate on the Yen and the Euro? (100 word minimum)

3) What is globalization? Why has globalization become so important during the last 10 years? How will globalization change financial management in the future? (100 word minimum)

4) How has the nature of the financial markets changed over the last 4 to 7 years with the financial meltdown and now recently with the financial markets not only recovering but hitting all-time highs?

5) Explain all the Risk associated involved in Companies and how there are specific people that handle risk management?

6) Explain the 5 Step Corporate Risk Management Process and its uses?

7) Explain the effect of supply chains on global financial decisions.

8) Describe factors that contribute to foreign exchange risk and methods to mitigate them.

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Finance Basics: Describe factors that contribute to foreign exchange risk
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