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SCHOOL OF BANKING AND FINANCE FINS5516 INTERNATIONAL CORPORATE FINANCE Session 1, 2003 potx

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FINS5516 1 S2.2001 SCHOOL OF BANKING AND FINANCE FINS5516 INTERNATIONAL CORPORATE FINANCE Session 1, 2003 Obje tive This course will equip students with the basic theoretical and pra

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FINS5516 1 S2.2001

SCHOOL OF BANKING AND FINANCE FINS5516 INTERNATIONAL CORPORATE FINANCE

Session 1, 2003

Obje tive

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

Staf , Contacts and Consultation

Instructor Location Telephone Consultation Hours

A/Prof Suk-Joong Kim (SK) Q3061 93854278 Monday 3-5pm

(s.kim@unsw.edu.au)

Prof Fariborz Moshirian (FM Q3064 9385 5859 Wednesday 2-3pm

(f.moshirian@unsw.edu.au)

Dr Alfred Yawson (AY) Q3067 93854900 Thursday11-13pm

(a.yawson@unsw.edu.au)

Please note that instructors will only response to student email correspondence that specifies the student’s full name and student number

Le tur Times

There will be two streams and students may attend either of these two streams For each stream, there will be two two hour lectures and one hour of tutorial each week The time and location are as follows:

Lectures:

1-Wednesday 11:00-14:00(for the first 6 weeks) in Science Theatre and from week

7 to week 14 from 15pm to 18pm in CLB 8

2-Wednesday 18pm-21pm from week 1 to week 14 in Murphy Theatre

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FINS5516 2 S2.2001

Assessment

The assessment scheme for this course is as follows:

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 NEW SOUTH GLOBAL on FRIDAY 2 May 2003 from 6pm to 8.30 pm It covers lecture materials from

lecture 1 to lecture 6 Attendance is compulsory

Final Examination

The Final Exam will cover material from week 7 to week 14

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

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FINS5516 3 S2.2001

Mate ials and Resour es

Main Texts

Shapiro, A.C (2002), 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, 8th Edition, Addison-Wesley

Butler, K C (2000), Multinational Finance, 2nd 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

Major Topics

• Foreign Exchange Markets and Key Relationships

• Foreign Exchange Risk Management

• International Corporate Finance

Note:To ics an sched le are n ic tve o ly.Le turers reserve he rig t o aler he co tent

of his co rse wih utprior n tc

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FINS5516 4 S2.2001

Schedule

I Introduction

Lecture 1 (AY) International Financial Management

Chap 1

II Foreign Exchange Markets and Key Relationships

Lecture 2 (AY) Foreign Exchange Market and Exchange Rates Determination

Chaps 7 & 2

Lecture 3 (AY) The International Monetary System and Economic Linkages

Chaps 3 &5

Lecture 4 (SK) Parity Conditions in International Finance, Futures and Options

Chaps 4 & 8

III Foreign Exchange Risk Management

Lecture 5 (SK) Measuring and Managing Transaction Exposures

Chap 10

Lecture 6 (SK) Measuring and Managing Economic Exposure

Chapter 11

Lecture 7 (FM) Country Risk Analysis and International Taxation issues

Chaps 6 and 17A

Lecture 8 Mid-session Exam (No Lecture on that week)

(The exam will cover lecture materials up to and including that covered in lecture 6

The exam will be held in the New South Solution on Friday 2 May 2003 at 6pm

IV International Corporate Finance

Lecture 9 (FM) International Portfolio and Direct Investments

Chapters 15 & 16 Fariborz Moshirian, Financial Systems in the new Millennium, Journal of

Multinational Financial Management, no 10, vol 3-4, 2001

Fariborz Moshirian, The New International Financial Architecture, Journal of

Multinational Financial Management, Vol 3-4, 2002 Please go to the library website of the

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FINS5516 5 S2.2001

UNSW and then go to the elsevier web on www.elsevier.com/locate/econbae and then under the Journal of Multinational Financial Management type the title of the article or follow the instructions given below:

Go to: "www.elsevier.com/locate/econbase"

There click: "Journal of Multinational Financial Management"

There click: "Full Text & Abstracts"

Lecture 10 (FM) Managing the Multinational Financial System

Chapter 20

Lecture 11 (FM) Multinational Corporation Capital Budgeting and Cost of Capital

Chaps 14 & 17

Lecture 12 (FM) International Financial Markets and Short Term Financing

Chap 12, 18 & 19.4

Lecture 13 (FM) Swaps and The Euromarkets

Chaps 9 & 13

Lecture 14 (FM) International Financial serviced

& the Review of the Final Exam

Reading: F.Moshirian, International Investment in Financial services, Journal of Banking and Finance, Vol 26, 2001 (download from

www.elsevier.com/locate/econbase under Journal of Banking and Finance

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