International financial management

Academic year: 2008-2009 Course code module FTEMAJ0023 Semester: 1st semester Credits: 6 Study load (hours) 168 Theory (hours): 60,00 Practice/Exercises(hours): Other (hours): Part-time program: Instructor(s) Chris De Groof Language of instruction: Dutch Semester exam information: exam in the 1st semester Contract restriction information: 1. Prerequisites *Algemene competenties Knowledge of: 1. Cash flow concepts 2. Financial derivatives *Sequentiality 2. Objectives (expected learning outcomes) The students are introduced into the: 1. functioning of the foreign exchange (fx) markets (from the enterprise perspective); 2. functioning of the financial markets and complementary financing possibilities; 3. techniques for hedging (foreign exchange -, interest - and market) risk; 4. techniques for optimizing international investment - and financing decisions. All these elements will be combined with exercises and examples. 3. Course content The first part of the course consists primarily of the properties of a multinational enterprise. Additionaly, the content and scope of financial management in an international setting are discussed. Afterwards, still in part I, the functioning of the foreign exchange markets is treated together with important fx financial derivatives (currency futures & currency options). The next chapters present an overview of the components of fx risk. Consequently, some figures & examples are presented to 'materialize' the possible hedging strategies for companies. Another topic is the evaluation of international investment projects. The first part closes with a discussion and of the importance and content of international cash management. The second part of the course focusses primarily on international risks and their implications with regard to the capital structure. Afterwards, a number of financing techniques for owner's equity as well as liabilities in an international setting will be discussed. Finally, an extensive evaluation and summarization of interest risk management en the application of swaps, Forward Rate Agreements, futures, options and warrants is made. 4. Teaching method Direct contact: Lectures Exercise sessions 5. Assessment method Exam: Written, without oral presentation Closed book Open questions 6. Compulsory reading – study material Syllabus Internationaal Financieel Management, partim I, Prof. dr. C. De Groof, Universitas, Antwerpen, oktober 2007 Syllabus Internationaal Financieel Management, partim II, Prof. dr. C. De Groof, Universitas, Antwerpen, oktober 2007 Syllabus Internationaal Financieel Management, partim III, Prof.dr. C. De Groof, Universitas, Antwerpen, oktober 2007 7. Recommended reading - study material - Shapiro, A. C., Multinational financial management, 7th edition, J. Wiley & Sons, 2003. - Madura, J., International financial management, 8th edition, Thomson South Western, 2006. - Eiteman, D., Stonehill, A., and Moffet, M., Multinational Business Finance, 10th edition, Addison-Wesley, 2004. 8. Tutoring Prof. dr. C. De Groof Chris.DeGroof@ua.ac.be + 32 (0)3 220 44 03 Prof. dr. De Groof is reachable by e-mail (Chris.DeGroof@ua.ac.be) or through the secretariat of the department Accountancy and Finance of the Faculty of Applied Economics, University of Antwerp. For help and assistance concerning the contents of this course, students can either contact the professor as well as the assistant, Vincent Molly (Vincent.Molly@ua.ac.be). Location of the secretariat of the department Accountancy and Finance: City campus University of Antwerp Office S.B. 329 Prinsstraat 13 2000 Antwerpen Belgium laatste aanpassing: last update: 25/07/2008 09:24 chris.degroof