Global Sourcing Defining Global Capital Market Opportunities
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DGP Inc is planning an expansion of its business operations internationally by adding a subsidiary (FDI) in Spain. The CFO has approached three investment banks, 2 in the USA and 1 in Europe, to provide the firm with financial information regarding the cost of capital in their respective markets, and also in major capital markets globally.
Instructions:
Explain what is meant by global sourcing of capital.
Explain what is meant by the terms Systematic risk, Unsystematic risk, and Beta as related to Investment in shares of public organizations.
According to Eiteman, Stonehill, and Moffett (2010) Depository receipts (depository shares) are negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank (p. 393) Define and contrast American Depository Receipts (ADRs,) and Global Depository Receipts (GDRs).
What is meant by the term Cross-Listing?
What is the difference between Eurodollars an Euronotes?
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