Master of Business Administration -
MBA Semester 4
Subject Code – MF0015
Subject Name – International
Financial Management
(Book ID: B1316)
Assignment
Set-2 (60 Marks)
4th Sem Spring/Fall Assignments
4th Sem Spring/Fall Assignments
Note: Each question carries 10 Marks. Answer
all the questions.
Q.1 What do you mean by optimum capital
structure? What factors affect cost of capital across nations?
Q.2 What is sub-prime lending? Explain
the drivers of sub-prime lending? Explain briefly the different exchange rate regime
that is prevalent today.
Q.3 What is covered interest rate
arbitrage?
Assume spot rate of £ = $ 1.60
180 day forward rate £ = $ 1.56
180 day interest rate in U.K. = 4%
180 day U.S interest rate = 3%
Is covered interest arbitrage by U.S
investor feasible?
Q.4 Explain double taxation avoidance
agreement in detail.
Q.5 Explain American depository receipt
sponsored programme and unsponsored programme.