4.7. What could be improved and suggestion for future research.

This thesis has tried to adopt a invest decision approaches to valuing the cross-border contract. Further empirical work is required to test this approaches in real business. I did a lot of assumption in research. The main problem was gaining access to the reliability data it was a major barrier.

I think that the research can be improved by the SWOT analysis of methods of the estimation the project (contract), with both strong and weak sides, opportunities and threat of each topic which are shown separately in detail.

To another hand, I had the cash flow problems in topic (2.3 Step 3). The activities of the financial manager about forecasted CF present the first several steps to create a short-term financing plan. The next step means that financial managers cover the forecasted requirements in the way possible for the firm.

First Second Third Fourth

Quarter Quarter Quarter Quarter

1

2

3

4

5

6

7

8

9

10

11

12

New borrowing:

1.      Bank loan

2.      Stretching payable

3.      Total

Repayment:

4.      Bank loan

5.      Stretching payables

6.      Total

7.      Net new borrowing

8.      Plus securities sold

9.      Less securities bought

10.  Total cash raised

Interest payments:

11.  Bank loan

12.  Stretching payables

13.  Interest on securities sold

14.  Net interest paid

15.  Cash required for operation

16.  Total cash required

Figure 4.5

In Figure 4.5 it is possible to see proximately short-term financing plan, in the top of the table possible to see that I divide the planning process into a quarter and a month. The divided in quarters plan is usually the method used by the majority of company, but if I have interest in payment which is usually calculated monthly it is better to forecast CF the same method. Other advantages of calculating the plan per moths are possibilities to delegate the same responsibility to junior managers and they will plan the cash flow on their own level, per month and the senior managers- per quarters. All levels of financial managers will take part in the processes of planning and will improve trial and error that helps them to understand the real nature of the problem the firm faces. Manager must keep on thinking about improvements.

At the same time a short-term financing plan requires the crucial calculation. Working out the plan can be delegate to the computer. Most corporations have created short-term financial planning models. All these models are usually simulation programs. Smaller companies can build the model by Excel programs. The short-term financial planning helps the company to optimize the budget.

When the managers of all level complete the last roadmap (Step 7 Decision Card) they collect crucial number of useful information. It is bringing the company extra possibilities.

C ollecting the date

Figure 4.6

The company can have the possibility to make more accurate forecast and complete the plan. Even more the company can have remarkable and useful date in real time, not as accounting date after several times, for decision about short-term borrowing such as:

• Bank loan.

• Commercial Paper (CP).

1. Short-Term Notes (STN).

2. Medium-Term Notes (MTN).

The STN and MTN are very interesting financial tools, the importance of which is increased at a current period. The bank loans will be expensive, IPO only one time, but CP in this situation, in times of crisis is very interesting and cheap tools for borrowing. I think that these financial tools will be developing in Russian Federation in the nearest future.

For the future research the area of Commercial Paper (CP) would be highly topical, in other words the market share of Short-Term Note (STN) and Medium-Term Note (MTN) will increase essentially after the crisis.