A British Firm Has a Subsidiary in the U

question 31

Essay

A British firm has a subsidiary in the U.S., and a U.S. firm, known to the British firm, has a subsidiary in Britain. Define and then provide an example for each of the following management techniques for reducing the firm's operating cash flows. The following are techniques to consider:
a) matching currency cash flows
b) risk-sharing agreements
c) back-to-back or parallel loans

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Definitions:

Current Yield

A financial metric that calculates the annual interest income from an investment as a percentage of its current market price.

Dividend Yield

A metric that indicates the annual dividend payment of a corporation as a proportion of its share price.

Discount Yield

A measure of a bond's return, calculated as the bond's discount from its face value divided by its face value, expressed as a percentage.