University of Miami Interest Rate Swap for ACME Company Email

PART A

Prior to beginning work on this assignment, review the Interest Rate Swaps (Links to an external site.) article. Go to the ISDA SwapsInfo (Links to an external site.) website and review information on interest rate swaps.

You have just been informed that ACME plans to finance the acquisition with a combination of equity capital and debt. In a minimum of 600 words:

·In your post, apply appropriate principles of valuation to design an interest rate swap for ACME to use in the acquisition.

· In an email to ACME’s management team, explain the swap and recommend the best option available to ACME.

·Outline how the swap will influence the integration and restructuring of the international acquisition target.

·Close your email by acknowledging any risk associated with the swap, and assuring management that the benefits of your swap will outweigh any detriments.

PART B

ACME is considering cross listing its stock on another index. Select one of your targeted countries and research the listing requirements for foreign companies in that country.

Advise ACME on how to proceed by analyzing the strategic opportunities for international operations created by listing their stock on the major exchange in one of the following countries Canada, Germany and South Korea. Summarize the requirements for listing on the exchange for the country you chose, and develop a strategy for how to advise ACME, including the pros and cons of cross listing and the tradeoffs between risk and reward. Your post should be a minimum of 400 words.

PART C

Research the last six months of the stock index for the country you have selected for the acquisition on the Financial Times (Links to an external site.) website. In a minimum of 400 words:

·For your initial post, compare the performance of your chosen country’s stock index with the stock market indexes from various regions of the world.

· Compare the performances and hypothesize what accounts for the differences.

·Determine what factors you would consider before advising ACME on acquiring a company in your chosen country and formulate an approach that would help mitigate any market risk involved.

Please include all references used to complete draft. There should be a minimum of two scholarly references for each part.