SCHOOL OF BANKING AND FINANCE FINS5516 INTERNATIONAL CORPORATE FINANCE Session 1, 2004 doc

FINS5516 1 S1.2004


SCHOOL OF BANKING AND FINANCE

FINS5516 INTERNATIONAL CORPORATE FINANCE
Session 1, 2004


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This course will equip students with the basic theoretical and practical knowledge required to

deal with international investment and financial decisions. It is relevant to a broad range of
professions including corporate treasury management, corporate finance, international
securities trading and investment management. The general emphasis is on the identification
and management of opportunities and risk relating to exchange rate fluctuations, international
financial markets and government policy changes.

PREREQUISITE or CO-REQUISITE FINS5513 Security Valuation and Portfolio
Selection

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Instructor Location Telephone Consultation Hours

Dr Vince Hooper Q3023B 93855984 Thur 1pm to 2pm
()

Prof. Fariborz Moshirian Q3064 9385 5859 Wed 5pm to 6pm
(
)

Ms Qiongbing Wu Q3050 93855852 Wed 11am to 12noon

Ms Wenling Yang Q3045 93855865 Wed 1pm to 2pm

Please note that instructors will only response to student email correspondence that specifies the
student’s full name and student number.
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FINS5516 2 S1.2004
Lecture and Tutorial : Wed 14pm to 17pm the Old Main Building, Room 145A and
Wed 18:00-21:00 Murphy Theatre


Assessment

The assessment scheme for this course is as follow:


Mid-Session Examination 50%
Final Examination 50%


Examination Format


Both mid-session and final examinations will be of 2 to 2.5 hours in duration.

Mid-Session Examination

The Mid-Session Examination will be held at Murphy Theatre D on Wednesday the
21
th
April 2004 from 6:00p.m. to 8:30 pm. It covers lecture materials from lecture 1
to lecture 6. Attendance is compulsory. Please note that this mid session exam is for

both streams and so there is no lecture in that afternoon.

Final Examination

The Final Exam will cover material not included in the Mid-Session Examination.

If you fail to sit for the examinations at the scheduled time, there is NO guarantee that a
supplementary examination will be provided.


Special Consideration


All requests for special consideration must be submitted to the Student Centre with supporting
documentation within seven days of the related examination or the due date of the related
assignment. A copy of the application form and its supporting documentation must also
be submitted to the lecturer-in-charge. Special consideration applications will be assessed
by the school’s committee. Requests on medical grounds will not be considered unless
Section B of the application form is duly stamped and signed by a registered medical
practitioner, with clearly legible contact details. Supplementary examination will only be
granted in exceptional cases. Should any supplementary examination (mid-session or final) be
granted, it would be held AFTER the formal final examination period. Specifically, the
student must be able to demonstrate a serious illness or a serious accident injury evidenced
by a medical certificate indicating physical inability to attend.

It is the responsibility of the students to check the subject HOMEPAGE for
supplementary examination date.

FINS5516 3 S1.2004
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Main Texts

Shapiro, A.C. (2003), Multinational Financial Management, Seventh Edition,
Wiley.

Other Highly Useful Texts Includes

Eiteman, D.K., A.I. Stonehill and M.H. Moffett (1998), Multinational Business
Finance, 8
th
Edition, Addison-Wesley.

Butler, K. C. (2000), Multinational Finance, 2
nd
Edition, South-Western.

Grabbe, J.O. (1996), International Financial Markets, Third Edition, New Jersey: Prentice
Hall.

Moosa, I. A. (1998) International Finance, Irwin, McGraw-Hill.


Other References

Eaker, M., F.J. Fabozzi, and D. Grant (1996) International Corporate Finance,
Dryden Press.

M. Skully, ed. (1990), International Corporate Finance: A Handbook of Australian
Business, Butterworths.

Levi, M.D. (1996), International Finance Third Edition, McGraw-Hill, 1990.

Juttner, J. (1995), International Finance and Global Investment Markets, Longmans,
Cheshire.

Gunter Duffey & Ian H. Gibby (1987), 50 Cases in International Finance, Addison &
Wesley.
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• Foreign Exchange Markets and Key Relationships
• Foreign Exchange Risk Management
• International Corporate Finance
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FINS5516 4 S1.2004
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I.
Introduction

Lecture 1 International Financial Management
Chap 1

Fariborz Moshirian, Globalisation and Financial Market Integration, Journal of
Multinational Financial Management, Vol 13, pp. 289-302.
.

II. Foreign Exchange Markets and Key Relationships

Lecture 2 Foreign Exchange Market and Exchange Rates Determination
Chaps 7 & 2

Lecture 3 The International Monetary System and Economic Linkages
Chaps 3 &5

Lecture 4 Parity Conditions in International Finance, Futures and Options
Chaps 4 & 8


III. Foreign Exchange Risk Management

Lecture 5 Country Risk Analysis and International Taxation issues
Chaps 6 and 17A

Fariborz Moshiria, Financial Services: Global Perspectives, the Journal of Banking
and Finance, Vol, 28, pp 269-276, 2004.

Lecture 6 Measuring and Managing Economic Exposure
Chapter 11


Lecture 7 Mid-session Exam
(The exam will cover lecture materials up to and including that covered in
lecture 6).


Lecture 8 Measuring and Managing Transaction Exposures
Chap 10



FINS5516 5 S1.2004

IV. International Corporate Finance


Lecture 9 International Portfolio and Direct Investments
Chapters 15 & 16


Lecture 10 International Financial Markets and Managing the Multinational Financial
System
Chapters 12 and 20

Lecture 11 International Trade Finance, and Short Term Financing
18 & 19.4

Lecture 12 Multinational Corporation Capital Budgeting and Cost of Capital
Chaps 14 & 17

Lecture 13 Swaps and The Euromarkets
Chaps 9 & 13

Lecture 14 Review