• Submitted By: amilykiki
  • Date Submitted: 11/05/2013 3:16 AM
  • Category: Business
  • Words: 4265
  • Page: 18
  • Views: 82


Zheyu Liu MA Economics and Finance University of Aberdeen


Executive Summary-------------------------------------------------------------3 1. Implications of Euro Debt Crisis on Siemens’ Financial Condition 1.1 Intensified Cash Flows--------------------------------------------------4 1.2 Overstock of Inventories------------------------------------------------5 1.3 Unattainability of the Receivables-------------------------------------7 1.4 Decreased Profit----------------------------------------------------------7 1.5 Difficulties in financing: harder to borrow from banks-------------8 2. Siemens’ Solutions of the Situation 2.1 Carry Out the Share Buyback Program To Optimize Capital Structure---------------------------------------------------------------------9 2.2 Keep Highly Graded Credit Rating-----------------------------------10 2.3 Focusing on Core Activities-------------------------------------------10 3. Quantitative Analysis: Empirical Evidence of CAPM--------------11 4. Siemens’ business in the U.S 4.1 America: the Biggest Potential Market-------------------------------14 4.2 How Interest Rate Parity Affects Siemens’ Hedge in U.S---------15 Conclusion ----------------------------------------------------------------------16 Recommendations--------------------------------------------------------------16 References------------------------------------------------------------------------18 Appendix-------------------------------------------------------------------------20



Executive Summary l Abstract:
Siemens AG is a Germany based multinational engineering and electronic company that has subsidiaries in more than 190 countries. This report focuses mainly on how Siemens’ financing activities is effected by the Euro sovereign debt crisis in the recent years. Firstly the author concludes the implications of how euro debt crisis has effected...

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