Module Code - Title:

FI6021 - International Corporate Finance

Year Last Offered:

2023/4

Hours Per Week:

Lecture

2

Lab

1

Tutorial

1

Other

0

Private

6

Credits

6

Grading Type:

N

Prerequisite Modules:

Rationale and Purpose of the Module:

This module seeks to introduce students to international corporate finance. It identifies the context and characteristics of international financial and foreign exchange markets and explores the financial decision making practices of MNCs.

Syllabus:

Introduction to corporate finance; Review of financial mathematics; The market for foreign exchange; International parity conditions; Foreign exchange exposure; Management of foreign exchange exposure; International debt and bond markets; Bond valuation; Interest rate hedging; International equity markets; Equity valuation; Capital structure and the cost of capital; International capital budgeting

Learning Outcomes:

Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)

On successful completion of this module, students will be able to: 1. Discuss the financial decision making practices of multinational organisations 2. Describe the characteristics of international financial and foreign exchange markets 3. Explain the determinants of foreign exchange rates 4. Assess the potential impact of financial risks on the value of a firm 5. Devise risk management strategies (for exchange rate and interest rate exposures) using derivative and other financial instruments. 6. Value and appraise debt and equity instruments 7. Evaluate the alternative sources of finance available to a firm and their suitability under different circumstances and varying corporate objectives. 8. Calculate the cost of capital for a multinational organisation and assess the impact on the cost of capital of changes in business and financial risk. 9. Assess the contribution to shareholder value of capital investments by a multinational company

Affective (Attitudes and Values)

1. Appreciate the influence of corporate culture when making business decisions. 2. Priotitize time effectively to meet obligations.

Psychomotor (Physical Skills)

N/A

How the Module will be Taught and what will be the Learning Experiences of the Students:

The students will be taught in a series of lectures and tutorials. The lectures will initially present theoretical concepts and then illustrate their applicability using examples from current financial market events. Practical, numerical examples are also presented as part of the lectures. The tutorials expand upon the quantitative elements of the course and allow the students the opportunity to discuss and debate the lecture material. In addition, the tutorials and lab sessions allow the students to focus on the practical application of many of the theoretical concepts.

Research Findings Incorporated in to the Syllabus (If Relevant):

Prime Texts:

Eun and Resnick (2012) International Financial Management, (6th Edition) , McGraw Hill

Robin, J. Ashok (2011) International Corporate Finance , McGraw Hill

Brealey, Myers and Allen (2011) Principles of Corporate Finance, 10th edition , McGraw Hill

Other Relevant Texts:

Eiteman, Stonehill and Moffett (2010) Multinational Business Finance, 12th edition , Pearson

Pike and Neale (2008) Corporate Finance and Investment: Decisions and Strategies, (6th edition) , FT Prentice Hall

Shapiro (2010) Multinational Financial Management, 9th edition , Wiley

Programme(s) in which this Module is Offered:

Semester - Year to be First Offered:

Autumn - 08/09

Module Leader:

darren.shannon@ul.ie