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Teach me finance
Добавлен 9 фев 2018
(18 of 18) Ch.21 - Summary of Chapter 21
Summarize the concepts and formulas learned in this Chapter on international corporate finance.
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Видео
(17 of 18) Ch.21 - Short-run & long-run exchange rate risk exposure
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When an international company runs projects in foreign countries, it is said to be facing, or exposed to, exchange rate risk. This risk exposure is caused by the uncertainty regarding what would happen within the next 12 months (or the "short-run exposure"), as well as what would happen in more distant future (or the "long-run exposure").
(16 of 18) Ch.21 - Overseas project's Net Present Value calculation using Foreign currency approach
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Use the so-called "foreign currency approach" to calculate the Net Present Value (NPV) of a project that, if accepted, would be taking place overseas. The idea is - keep all expected future cash flows from the project in the foreign currency and calculate the NPV. Then, as the very last step, convert the NPV from the foreign currency into the domestic currency (e.g., Dollar).
(15 of 18) Ch.21 - Overseas project's Net Present Value calculation using Home currency approach
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Use the so-called "home currency approach" to calculate the Net Present Value (NPV) of a project that, if accepted, would be taking place overseas. The idea is - convert all expected future cash flows from the project from the foreign currency into the domestic currency (e.g., Dollar). Then, calculate the NPV in Dollars.
(14 of 18) Ch.21 - International Fisher effect
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Combine the common elements in the "Uncovered Interest Parity" and the "Relative Purchasing Power Parity" formulas and derive a new formula known as the International Fisher Effect. It says that the real interest rates are equal across different countries.
(13 of 18) Ch.21 - Uncovered interest parity
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Combine common elements in the "Unbiased Forward Rates" and the "Interest Rate Parity" formulas, and derive a formula in international corporate finance known as the "Uncovered Interest Parity". It shows how the expected next year's exchange rate is determined by what it is today as well as the difference between the Foreign and the Domestic risk-free rates.
(12 of 18) Ch.21 - Unbiased forward rates
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Explanation of a simple formula in international corporate finance known as "unbiased forward rates"
(11 of 18) Ch.21 - Interest rate parity: example
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A numerical example that uses the Interest Rate Parity formula.
(10 of 18) Ch.21 - Interest rate parity: derivation of formula
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Derivation of the "exact" and "approximate" Interest Rate Parity (IRP) formulas
(9 of 18) Ch.21 - Interest rate parity explained
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A numerical example that shows the relationship between the risk-free rate in the Domestic and Foreign countries, today's exchange rate between the two countries' currencies, and the required one-year forward exchange rate, that would prevent arbitrage opportunities. This relationship is known as the Interest Rate Parity.
(8 of 18) Ch.21 - Relative purchasing power parity
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Relative Purchasing Power Parity is a formula that shows how expected future exchange rate between two currencies should depend on what today's exchange rate is, as well as the difference between the foreign and the domestic expected inflation rates. For example, if the the cost of living is expected to increase by a lot more in Mexico than in the USA, then in order for the purchasing power of ...
(7 of 18) Ch.21 - Absolute purchasing power parity
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Idea: the same commodity should cost the same amount of money in different countries, when one uses the current exchange rate to convert the currencies.
(6 of 18) Ch.21 - Two types of exchange rate trades
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Spot trade vs. forward trade
(5 of 18) Ch.21 - Two types of exchange rates
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(5 of 18) Ch.21 - Two types of exchange rates
(4 of 18) Ch.21 - Exchange rate explained
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(4 of 18) Ch.21 - Exchange rate explained
(3 of 18) Ch.21 - Eurocurrency, Eurobonds, Foreign bonds, LIBOR, foreign exchange markets
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(3 of 18) Ch.21 - Eurocurrency, Eurobonds, Foreign bonds, LIBOR, foreign exchange markets
(2 of 18) Ch.21 - Calculation of "cross rate"
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(2 of 18) Ch.21 - Calculation of "cross rate"
(1 of 17) Ch.14 - Big picture of the Chapter
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(1 of 17) Ch.14 - Big picture of the Chapter
(2 of 17) Ch.14 - Cost of capital: overview
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(2 of 17) Ch.14 - Cost of capital: overview
(3 of 17) Ch.14 - Cost of equity: explained
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(3 of 17) Ch.14 - Cost of equity: explained
(4 of 17) Ch.14 - Cost of equity: example using "dividend growth model" approach
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(4 of 17) Ch.14 - Cost of equity: example using "dividend growth model" approach
(5 of 17) Ch.14 - Cost of equity: example using "CAPM" approach
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(5 of 17) Ch.14 - Cost of equity: example using "CAPM" approach
(6 of 17) Ch.14 - Cost of equity: example using both approaches
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(6 of 17) Ch.14 - Cost of equity: example using both approaches
(7 of 17) Ch.14 - Cost of preferred stock: explanation & example
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(7 of 17) Ch.14 - Cost of preferred stock: explanation & example
(8 of 17) Ch.14 - Cost of debt: explanation & example
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(8 of 17) Ch.14 - Cost of debt: explanation & example
(9 of 17) Ch.14 - Capital structure weights: explained
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(9 of 17) Ch.14 - Capital structure weights: explained
(10 of 17) Ch.14 - Capital structure weights: 2 examples
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(10 of 17) Ch.14 - Capital structure weights: 2 examples
(11 of 17) Ch.14 - WACC: building the formula
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(11 of 17) Ch.14 - WACC: building the formula
(12 of 17) Ch.14 - Calculate WACC: example
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(12 of 17) Ch.14 - Calculate WACC: example
Would you mind sharing the ppt?
Excellent... You made it easy...
Much needed
Do you need to differentiate between Cash Flow to the firm or equity?
Hi can you explain the math behind the tax shield approach formula
Why in valuation they dont count cash in in current assets?
Can you do a video on all the techniques? (IRR, NPV, Payback, ARR, Discounted Payable) for both Profit case and savings/cost-cutting case. Thanks
Thanks
Thank god i googled this and found you... I am in this class right now and my professor is TERRIBLE and not helpful at all... he literally doesn't go into detail like how you are and dumbing it down for NON- Finance Majors. THANK YOU !!!!
G
Hello Dr Chernobai, not sure if you will see this but worth a shot; wouldn't EBIT be 153,000-26,000? Why are we deducting interest only after when EBIT shouldn't include it? Thank you for your videos and time
I dont understand why no one computes QUARTERLY dividends. Most of them pay quarterly. I cant find it for the life of me on RUclips. HELP!
It's been a while since you uploaded these videos, but these are by far one of the best explanations for finance topics. Thank you so much ❤
love it!
👍👍👍
😂❤
For a topic that can easily confuse people you explained it very well
Thank you so much Very helpful Appreciat
Why are we calculating D0 is they ask for the last dividend paid (D1)?
Thanks from Bangladesh 🇧🇩🇧🇩🇧🇩
if my money gets 1.5 in 4 years then to calculate compounding annual average return could be calculated by {(final value /Initial Value )^1/4 } - 1 = same answer 10.67 %
thanks, watching this video before my Investment Theory final exam
I m from Bangladesh......Ur teaching methods excellent 👌👌 After 7 days my final exam. Now I see your vedio.
Is probability same as weight
absolutely amazing,clear,to the point soo helpful. Thank you.
So if I want to find P for 2 years I calculate dividend 3 right??
would def buy stock b
Thank's a lot for your awesome method of teaching
How can I find the slides?
Very comprehensive demonstration❤ thank you so mũh 😍
Thanks mam
excellent video ,thanks appreciate
thanks so much, luck we have your channel. If my Uni teacher's logic was half as clear as yours I wouldn't be this struggle.
What about the correlation coefficient?
Спасибо большое!
Shouldn’t the RD been converted into EAR?
5:58 how we forecast the sales of our coffeshop in a particular year? is there any calculation tools?
Thank you for sharing these. I have an exam in a couple of days and your videos are very helpful!
finally understood this, thankyou
I love you!
i have a question, when you use beta to find the e(r) on a stock is it gonna be the same if you just use the previous formula (e(r) prob x rate in different state of economy) ?
Thank you for the explanation❤
How do you calculate the probability on different state?
Is it just a random number you give or there is a way you have to calculate it?
Thanks a lot
Miss you professor.
What text book is being used? Great presentations by the way.
Beautiful explanation ❤ thanks
UR THE FIRST PERSON TO ACTUALLY EXPLAIN EVERYTHING IN DETAIL SO WELL
so useful, thanks for explaining so well!!
Thank you for the video 🙏🏽
Great video thanks 🙏🏽