Apa format for citation and refernces
At least 2 references
5 -6 paragraph
Axetem, Inc. wants to explore thepossibility of establishing a factory and a customer service center in adeveloping nation to take advantage of a less expensive labor force. The firststep in a series of various feasibility studies is a political risk analysis.You have been asked to put together a team to start the process.
Compose a memo to your team thatincludes the following:
- To what does the term political risk refer?
- Give at least 3 examples of sources of political risk.
- Explain what distributive and catastrophicpolitical risks entail, and explain which type is more likely to be a moresignificant factor in a developing country.
Discuss implications of international politics forstrategic financial management.
Analyze ethical issues in financialmanagement for multinational enterprises.
Part b: 2 or morepages
Research the following: Francois Buisson is the controlling shareholder ofGroupe Industrielle Internationale (GII), a major importer of sporting goods inthe European Union. GII is aiming for a major expansion project within the next5 years. One of the objectives of this expansion is to form a major alliancewith Axetem as its main running shoe supplier. In short, GII’s expansion plans willentail huge sales revenues for Axetem. To gain additional investors, GII wantsto list its company’s stock on the NYSE.
Brian Tobias, Axetem’s CEO, has mandated the creation of a special team atAxetem, Inc. with the aim of helping GII get started on its task of gettinglisted on the NYSE. Your team is to conduct initial research about therequirements for a non-U.S. firm to obtain an NYSE listing and how a non-U.S.firm can maintain its NYSE listing.
Hint: Start by visiting http://www.nyse.com/, and look for various listingrequirements.
research the top listing and continuation requirementsmandated by the NYSE.
Complete the following for paper
- Currently, GII’s capital structure is 75% equity basedand 25% debt based. GII is in the 25% marginal tax bracket in France andhas a cost of equity of 18% and an average debt cost of 7%. CalculateGII’s weighted average cost of capital (WACC).
- What is the main advantage of the divisional cost ofcapital approach over the WACC approach?
Use the available resources toresearch the NYSE and the divisional cost of capital approach to complete thisassignment.
Part c: 6 paragraph
· Why do the top listing and continuation requirements of the NYSE exist?
· How do these requirements affect the capital structure of a multinationalfirm?
· What elements makeup the optimal capital structure for a multinational enterprise