5Globalfinancialmarketsandinternationalaccounting资料.ppt

* Genus Corporation (USA) ? Brazil Germany China Moderate tax High tax Low tax Unstable currency Stable currency Stable currency Limited Funds Free funds Blocked funds movement movement Genus faces three challenges: management of tax, currency and funds, whose are key components in financial management. Genus faces three challenges: management of tax, currency and funds, which are key components in financial management. Analysis of the Sample Tax Management Genus would prefer to pay less tax rather than more. If it could “rearrange its profits among its units, it would prefer to make more of its profits in China and Brazil. Currency Management valuation analyses of the three currencies Genus would prefer to rearrange its profits into Germany and the Euro for currency management purposes. Funds Flow Management Funds flows in the three countries Genus would manage to minimize its funds to be blocked International Financial Management Some reminders aid in describing the financial management issues The primary goal is the maximization of consolidated profits after tax Retain consolidated profits in the country where they were earned Financial statements are expressed in the local currency of the unit for tax Calculation of EPS and Process of Evaluating an Investment Shareholders, track the firms financial performance on the basis of its earnings per share (EPS) Consolidated profits after tax US$8,928,000 EPS= ------------------------------------ = ------------------- Shares outstanding 10,000,000 = US$0.89/share Evaluating a potential foreign investment Capital budgeting Capital structure Raising long-term capital Working capital and cash flow management International Capital Budgeting Net pres