Englischer Teil

Question 1

Financial Management Goals from shareholders point of view (5)

Answer 1

• Maximize current value per share of existing stock
• assure solvency
• avoid finance distress and bankruptcy
• care for efficient financial controlling system
• support international strategies of the firm

Question 2

Reasons for holding cash (3)

Answer 2

• Transactuon motive
  -precaution motive
• speculative motive

Question 3

Transaction motive

Answer 3

cash reserve to balance short term cash in and outflows

Question 4

Precaution motive

Answer 4

unexpected cash needs require maintenance of cash reserves, which can be easily relized per short term investments

Question 5

Speculative motive

Answer 5

reserve for implementing attractive investments or returning to shareholders

Question 6

Raising capital trends (3)

Answer 6

• Globalization
• Deregulation
• innovative finance instruments

Question 7

Globalization

Answer 7

cross border movement of goods, services, people and money without barriers

Question 8

Deregulation

Answer 8

Capital trend to countries with high returns and low restrictions on capital in and outflows, deregulated markets offer lower interest and taxes for lenders and borrowers

Question 9

Innovative finance instruments

Answer 9

Asset securitization is building assets, the registering of bundles as securities and selling them directly to public = avoid constrains of costs by governments and appeal new sets of investors

Question 10

Recent trends in international trade (5)

Answer 10

• Liberalization of distributive channels
• IT services
• local content regulation
• increasing imposed sanctions / counter sanctions