International Corporate Finance D10, 10 credits Syllabus, course D10 Business Administration (Advanced level) Course code: FEKD15 Responsible Department: The Department of Business Administration Subject: Business Administration Level: D Field of education: Social Science This course is a course at the D-level in a MSc-degree at the University of Umeå. The course is also included in the study programme in International Business Administration and Economics at Umeå Business School. 1. Resolution to arrange the course The course is established by the Faculty of Social Science at the University of Umeå and the syllabus was confirmed by the Board of Business Administration June 6, 2002. 2. Objective and contents The purpose of the course is to give the student an opportunity to gain knowledge of the key financial decisions of the multinational firm. The course aims to treat international financial management as a natural and logical extension of the principles learned in the foundations course in financial management. It builds on and extends the valuations frame- work provided by domestic corporate finance to account for dimensions unique to international finance. All the traditional areas of corporate finance are explored, including working capital management, capital budgeting, cost of capital, and financial structure. This is done from the perspective of a multinational corporation, concentrating on those decisions that are rarely encountered by domestic firms, e g multiple currencies with frequent exchange rate changes and varying rates of inflation, differing tax systems, multiple money markets, exchange control, segmented capital markets, and political risks. The course focuses on decision-making in an international context. Both numerical and institutional examples are used to demonstrate the application of financial analysis and reasoning in solving international financial problems. Students are encouraged to see the value of examining decision problems with the aid of a solid theoretical foundation. The emphasis throughout the course is on taking advantage of being multinational. 3. Prerequisites Students require a minimum of 30 credits from the A- and B-level courses in Business Administration as well as 10 credits from either International Controlling C/D or the course Ekonomistyrning C10/D10. Exchange students require a minimum of 40 credits from the A-and B-level courses in Business Administration for entry to the course. It corre- sponds to 60 ECTS-credits in basic courses in Business Administration (Management,Accounting,Financial Investments,Cost Accounting and Marketing) And also at least 10 credits from a course at advanced level dealing with Cost Management and/or Management Accounting. 4. Course Contents Module 1 Financial Management in an International Perspective (5 credits) · Environment of International Financial Management · Market Efficiency Lessons for Corporate Finance · Corporate Strategy and Foreign Investment · Controlling International Operations · Financing from a Global Perspective · Management Decisions, Corporate Strategy and Firm Value · Acquisitions and Takeovers · Applications of Option Pricing Theory in Corporate Finance Module 2 Multinational Financial Management (5 credits) · International Financial Markets · Financing Foreign Operations · Exchange Rate Determination · Managing the Multinational Financial System · International Portfolio Management · The Management of Political Risk · International Tax Management · International Investment Decisions · Designing a Global Financing Strategy 5. Teaching methods and examination The course comprises conventional lectures, discussions based on a number of relevant cases, and continual work on a project report. We will be discussing current events from Swedish and international business magazines on issues related to international business at the beginning of each class period. Guest lectures might be used in examination. The examination comprises a written examination at the end of the respective modules, and an assessment of completed cases and project reports. Complementary work on term papers and other compulsory tasks should be completed two weeks after the final date of the module, at the latest. Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within 2-3 weeks on courses having the normal pace of study. After this, the sub- sequent opportunity for taking the examination arises, as a rule, in connection with the module offered during the subsequent term. Beyond that, additional examination opportunities normally arise every academic year one week prior to the start of the autumn term. Information on this can be obtained from the Student Counsellor. Resit opportunities are given each August on modules for which there are written examinations held at the end of the spring term. The following grading system is used: Pass With Distinction (VG), Pass (G) and Fail (U).To achieve the grade Pass with Distinction for the course as a whole, the student must have achieved at least 75% of the total of points on the separate modules or the equivalent. When a student has failed an examination on two occations, he or she has a right to have another grading teacher. A written request should be handed to the director of studies no later than two weeks before the next examination opportunity. Grades on the course are awarded when students have passed all examinations and compulsory course elements. Swedish-speaking students should for additional information in this and the next section refer to the syllabus "Företagsekonomi C10/D10" confirmed by the Board of Business Administration in 2001 or later. Information about "muntan" can also be obtained from the student counsellor. 6. Course Language In cases where there are applicants from abroad, the course language will be English. Otherwise, parts of the course may be taught in English. Information on language aspects can be obtained from the student counsellor. 7. Readings and other material Module 1 Financial Management in an International Perspective (5 credits) Ross, S. Westerfield, R. Jaffe, J. Corporate Finance. McGraw-Hill 2002 Sixth edition. ISBN 0-07-283193-6 Student Problem Manual to accompany Corporate Finance. McGraw-Hill. ISBN 0-07-233880-6 Dept of Business Administration.: Selected Articles (Studentexpeditionen) Module 2 Multinational Financial Management (5 credits) Eiteman, David K., Stonehill, Multinational Business Finance, Arthur, I., Moffett, Michael, H. Addison Wesley, latest edition. Dept of Business Administration.: Selected Articles (Studentexpeditionen) Umeå University, Department of Business Administration, 901 87 Umeå Phone: 090-786 50 00 vx. Fax: 090-786 66 74.