Saint Bonaventure University
Finance 461

Fall 2000

International Finance




Instructor: Jim Mahar, 321 Murphy, 375-2359, jimmahar@FinanceProfessor.com

Office Hours: Subject to change: come to class first week!
                     M-W 11:00-12:30
                     T        10:30-12:30
                     Online office hours: Friday: 10:00-11:00
                     and by apppointment

Prerequisite:  Finance 301

Required Materials:
 

Text: Multinational Finance, Kirt Butler, Second Edition.
Other Required Materials: FinanceProfessor.com newsletter Recommended Materials Wall Street Journal Objective: The business world has become increasingly global in nature. Technological improvements, deregulation, and a changing marketplace have created a situation where all firms are involved in international business. As businesses have become multinational, so to has the financial side of businesses. Every day we see international takeovers, billions of dollars being traded in foreign exchange markets, firms issuing securities in multiple nations, investors buying securities around the world, and customers buying from other nations.

This class will endeavor to prepare students to operate in this multinational world. In the face of this globalization, we need to learn how to identify opportunities and risks that are inherent in a global world. Once so identified, we will investigate ways in which these risks can be reduced.

 Grading: Grades will be assigned based on the following:

Attendance and class participation 15%

Homework/term paper 15%

Test 1 20%

Test 2 20%

Cumulative Final 30%

Each student is required to submit a term paper (4-8 pages). Which will be due before Thanksgiving. Topics can be discussed on an individual basis.

Each student will be required to meet with me at least twice during the course of the semester. This will be an opportunity for you to let me know how the class is going and to make sure we all keep up to date in the class.

I reserve the right to have unannounced quizzes if the class is not keeping up with the reading assignments. However, I hope these are unnecessary.

Cheating will not be tolerated. Cheating on a test or plagiarizing the term paper will result in a failing grade for the course. Students can work together on the homework, but each student is expected to submit his/her own work.

The course should be a great deal of fun. We will be using many of the basic corporate and investment tools but will be using them in an international context. With the whole world to look at, it should be a fast paced and exciting course!
 
 

Course Outline




Week 1 Introduction to Multinational Finance Chapters 1,2

Week 2 Foreign Exchange Markets Chapter 3,4

Week 3 Currency Risks Chapter 4,5

Week 4 Multinational Corporate Finance Chapter 6,7

Week 5 Multinational Corporate Finance

(capital budgeting and capital structure) Chapter 8,9,10

Week 6 International Market for Corporate Control Chapter 11

Week 7 Identification and control of Currency Risk Chapters 12,13,14,

Week 8 More on Currency risks Chapters 15,16

Week 9 Derivative Securities for Currency Risk Management Chapters 18, 19

Week 10 Swaps and other Financial Derivatives Chapters 20

Week 11 Other Hedging techniques

Week 12 World Capital Markets

Week 13 International Investment Theory and Practice Chapter 23

Week 14 Investing Internationally (why and what to look out for)

Week 15 Week to catch up.