On 19 March 2012, the iconic technology company Apple announced a program to distribute its “excess” cash to shareholders in the form of dividends and share buybacks. This announcement follows a pattern similar to the then iconic Microsoft's (MSFT) announcement in 2004. Likewise, the bluest...

Though practitioners and academics rely on similar conceptual frameworks when valuing illiquid equity securities, they emphasize different aspects of the framework. In contrast to academics, practitioners emphasize market multiples, implied equity market risk premiums, industry betas, and market...

Though practitioners and academics rely on similar conceptual frameworks when valuing international equities in general and emerging market equities in particular, they emphasize different aspects of the framework. In contrast to academics, practitioners adjust discount rates as opposed to cash...

In 2010-2011, investment-grade borrowers such as the California Institute of Technology (Caltech), Norfolk Southern Corporation, Rabobank Netherlands, United Mexican States (UMS), the Massachusetts Institute of Technology (MIT), and the University of Southern California issued 100-year bonds...

Since the 1970s, exchange rate volatility has increased markedly and, with it, the levels of foreign exchange risk. In fact, fluctuations in financial variables such as exchange rates and interest rates have produced capital gains and losses so large as to swamp many companies' operating...

Foreign exchange options (FXOs) can serve international financial managers in several ways. First, FXOs are essential to hedging “contingent” foreign exchange exposures – the kind of exposure which arises, for example, when a US contractor bids for a contract denominated in a foreign...

In 2010-2011, investment-grade borrowers such as the California Institute of Technology (Caltech), Norfolk Southern Corporation, Rabobank Netherlands, United Mexican States (UMS), the Massachusetts Institute of Technology (MIT), and the University of Southern California issued 100-year bonds...

This paper re-examines the evidence on Purchasing Power Parity (PPP) in the long run. Previous studies have generally been unable to reject the hypothesis that the real exchange rate follows a random walk. If true, this implies that PPP does not hold. In contrast, this paper casts serious doubt...

Though practitioners and academics rely on similar conceptual frameworks when valuing international equities in general and emerging market equities in particular, they emphasize different aspects of the framework. In contrast to academics, practitioners adjust discount rates as opposed to cash...

Though practitioners and academics rely on similar conceptual frameworks when valuing illiquid equity securities, they emphasize different aspects of the framework. In contrast to academics, practitioners emphasize market multiples, implied equity market risk premiums, industry betas, and market...