Course Information Undergraduate prospectus

International Corporate Finance

Course summary

Course code: FINA1106
Level: 6
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Guoxiang Song

Specification

Aims

building on the second-year finance courses, in particular Managing Business Finance and Financial Markets, Institutions and Instruments. It examines the theory and practice of corporate investment and financial decisions. Its aim is to provide an understanding of some of the central decision problems in corporate finance. It also provides knowledge that is important to those concerned with financial management in a multinational setting.

Learning outcomes

On successful completion of this course a student will be able to:

1. further develop their knowledge of finance issues by examining both empirical and theoretical research;
2. understand and apply the key theorems and concepts of corporate finance;
3. identify key elements of corporate finance problems and choose appropriate economic models to solve the problems;
4. understand how corporate finance is related to economic and business decision making;
5. critically analyse different investment projects and identify alternative sources of funds;
6. critically discuss the relationships between exchange rates, interest rates and inflation rates.

Indicative content

Introduction to the course and overview of International Corporate Finance
International flow of funds
International financial markets
Exchange rate determination
Currency derivatives
Government influence on exchange rates
International arbitrage and interest rate parity
Inflation, interest rates and exchange rates
Forecasting exchange rates
Measuring exposure to exchange rate fluctuations
Managing transaction exposure
Managing economic exposure and translation exposure
Direct foreign investment
Multinational capital budgeting
International corporate governance and control
Analysis of country risk
Multinational cost of capital and capital structure
Financing in the long-term
Financing international trade
Financing in the short-term
International cash management

Teaching and learning activity

This course will be delivered through two hour weekly lectures and one hour seminars.

Assessment

Individual Essay - 40% weighting; 40% pass mark; 2000 words.

Exam - 60% weighting; 40% pass mark. Last item of assessment.

Students are not required to pass all components in order to pass the course.