Business Administration C5 Financial Management in an International Perspective, 5 credits Syllabus, course C5 Business Administration, 5 credits (Advanced level) Course code: FEKC93 Responisble Department: The Dept of Business Administration Subject: Business Administration Level: C Field of education: Social Science This course is at advanced level in a Bsc- or a Msc-degree at the University of Umeå. The course is intended for exchange students within particular exchange programmes This course is a part of the course International Corporate Finance, 10 cr http://www.fek.umu.se/svl/lwd15.txt 1 Resolution to arrange the course The course is established by the Faculty of Social Science at Umeå Uni- versity and the syllabus is confirmed by the Board of Business Admini- stration June 6, 2002. 2 Objective and contents The courses in International Corporate Finance consist of "Financial Management in an International Perspective", and "Multinational Financial Management". 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. While the international financial execu- tive makes both investment and financing decisions as his/her domestic counterpart, he/she is faced with added political and economic risks as well as more complex tax laws and multiple financial markets. 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 appli- cation 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 multi- national. Financial Management in an International Perspective, 5 credits Objectives : * 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 3 Prerequisites Students are reguired to have a minimum of 30 credits from the A- and B- level courses in Business Administration for entry to the course. 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 Teaching methods The core topics of the course will be covered through seminars, case- studies and lectures. Students are expected to participate actively in lectures, seminars and case analyses and presentations, given oral and written presentations on a number of occasions. Guest lectures might be used in examination. 5 Examination Attendance at seminars and case presentations are required to pass the course. A written comprehensive examination (tentamen) is also required. The quality of the case studies and the oral presentations can be a part of the grading. The following grading system will be used: Pass with distinction (Väl godkänd, VG), Pass (Godkänd, G) and Fail (Underkänd, U). For exchange students the ECTS grading scale will be used upon request. 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. 6 Utilization et cetera Autumn semester Financial Management in an International Perspective, (September-October) Multinational Financial Management, (October-November) Timetable other courses, see http://www.fek.umu.se/svl/lwcourse.html 7 Readings and other material, Business Administration C5 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) UMEÅ UNIVERSITY Faculty of Social Sciences Department of Business Administration S-901 87 Umeå, Sweden www.fek.umu.se