International Finance Case Study

International Finance Case Study
International Finance Case Study

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International Finance Case Study

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Please comment/answer the following two questions.

1.  What might have been some of the reasons Apple chose to raise debt capital in 2015 by issuing bonds denominated in Swiss Francs.?

2. Several large foreign corporations, such as Toyota, Siemens, and British Petroleum, list shares in U.S. stock exchanges.  What are the main costs and benefits for these corporations to raise equity capital in the U.S.?

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The reasons why Apple chose to raise debt capital in 2015 by issuing bonds denominated in Swiss Francs

In 2015, the yields on European bonds hit a record low. Among the most affected were Germany and Switzerland. Given this situation, Apple Inc. took the opportunity to seek funding for capital processes that were due that year. These were mostly stock buybacks and payment of dividend due (United States Securities and Exchange Commission, 2015). In addition, Apple Inc. is among the crop of few companies with an AA1 credit rating. This implies that the firm is very attractive to investors in both the US capital markets, as well as the various international markets.

The main costs and benefits for foreign corporations to raise equity capital in the U.S.

Unlike in the past, multinationals are increasingly adopting to raising funding in capital markets abroad rather than at home. This is largely owing to the increasing rate of globalization, and the various benefits drawn by the firms. Among the benefits of global companies such as Toyota, Siemens, and British Petroleum raising capital in the US include a better standard of governance in the US capital markets…..

International Finance Case Study

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