The Analysis of Short-Term Cross-Border Financing Decisions

The Analysis of Short-Term Cross-Border Financing Decisions

A theoretical and practical consideration of the "Breakeven Exchange Rate" (BER) Methodology is presented for analysis of short-term cross-border financing alternatives. The method requires an assessment of payoff functions for competing financing strategies, computation of a "Breakev...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Financial management 1976-10, Vol.5 (3), p.19-27
1. Verfasser: Folks, William R.
Format: Artikel
Sprache:eng
Schlagworte:
Bank loans
Currency
Decisions
Exchange rates
Financing
Foreign exchange rates
Income taxes
Interest costs
Loan financing
Loan rates
Probability distributions
Sensitivity analysis
Short term
Subsidiary companies
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:A theoretical and practical consideration of the "Breakeven Exchange Rate" (BER) Methodology is presented for analysis of short-term cross-border financing alternatives. The method requires an assessment of payoff functions for competing financing strategies, computation of a "Breakeven Exchange Rate" on the basis of these functions, and comparison of this breakeven rate with an estimated value of the spot rate of exchange prevailing at the date of the maturity of the debt.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665128