Questions

Prof. Florencio Lopez-de-Silanes Case: Huaneng Power International INC. 1. You piddle been hired as an international investment banker by a large U.S. institutional investor who is considering purchasing HPI stock. Provide an analysis of i) China as an investment destination, ii) key success factors, and iii) HPIs strengths and weaknesses. 2. HPI privations to access financial markets. What be the options available to the hearty? Provide pros and cons of available options in particular, stimulate with: a. Debt markets. b. rectitude markets: i. In particular, what type of listing is suitable for Huaneng to be? i.e. domestically within China and internationally, listing in Hong Kong, outstanding of the United Kingdom and the US. (In the US between different ADR levels) ii. What argon the benefits for a non-US firm that decides to list on a US exchange? 3. What is the in effect(p) cost of capital for the various Equity options? Measure and rationalise the cost of capi tal for each law option. 4. Now infer you atomic number 18 HPIs investment banker and you are proposing an ADR on the NYSE.

You have to convince HPIs bearer of the expenditure at which they should have it off the handles? What is a reasonable share price? why? 5. What writ of execution strategy would you signal? Present your recommendation on whether, how and why HPI should have proceeded with the issue. 6. As the investment banker of the institutional investor, would you have recommended to taint stock in this company at all? At what price? Why? 7. Given the current international investor environment (and n ot in 1994), what steps could HPI and the Ch! inese government shoot down to irritate it easier for firms from China to raise capital internationally? If you want to occur a full essay, order it on our website: BestEssayCheap.com

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