Bradley University

FIN 623 – Multinational Finance

Foster College of Business

Dr. Arlyn R. Rubash

Fall Semester, 2017

Finance

149 Campustown, 1-309-677-2258

COURSE OBJECTIVE
Students are expected to develop a solid understanding of multinational finance. The understanding emerges through a rigorous treatment of methodologies and theories of multinational finance. Students should obtain a broad understanding of multinational finance literature and practice with a particular focus on a chosen area. Exchange rate calculations include cross rates, forward rates, parity conditions, derivatives, arbitrage and exposure management. Government influence and alternate systems should be understood. Financing, capital budgeting, and international cash management are examined.

COURSE STRUCTURE: This course is delivered entirely online. It provides students with convenient, flexible and rapid access to an MBA program elective. A textbook provides foundation material, interactions with the instructor elaborate on this material and a research project enables each student to focus on a narrow self selected topical area. Scheduled exams offer students opportunities to demonstrate acquired knowledge.

PREREQUISITES
All foundation courses must be completed.

TEXT
International Financial Management, 12th edition, 2015, by Jeff Madura, Thompson - Southwestern Publishing

INTERNET
http://hilltop.bradley.edu/~arr/courses/fin623/

OFFICE HOURS
T & Th 1:30-2:30 & online by arrangement

GRADE DETERMINATION
Comprehensive exams contribute 80% of the final grade and a project contributes 20% of the final grade. Component weights are shown in the schedule below.

Final grades will be assigned according to the following percentage guidelines.

Lower Limit

Letter Grade

Upper Limit

90

<

A

<

100

80

<

B

<

90

70

<

C

<

80

60

<

D

<

70

F

<

60

CLASS ATTENDANCE REQUIREMENTS: There are no structured classes. Students are expected to know and understand all material discussed online. This includes contributions from other students as well as those of the instructor.

EXAM ATTENDANCE REQUIREMENTS: All exams must be taken as scheduled. If an exam is missed for any reason a make-up exam must be taken as soon as is reasonably possible. To request this option, a written explanation must be given to the instructor. Makeup exams will count a maximum of 90% of regular exams.

FIN 623 Financial Management Fall, 2017 Assignment Schedule

Date

Chapter

Topic

Questions/Problems

 

10/18

 

Introduction:

Online 9:00-9:30pm

 

1

2

Multinational Financial Management: An Overview

International Flow of Funds

1, 2, 4, 13, 15

1, 2, 4-7, 9-13

 

3

4

International Financial Markets

Exchange Rate Determination

1-7, 10, 11, 13, 15

1-6, 14, 16

 
5
 Currency Derivatives (Including Appendix) 1-22
10/26   Research topic selection due  
 

6

Government Influence on Exchange Rates

1-6, 8, 11-14,19

11/3   First exam (200 Points)  

 

7

8

International Arbitrage & Interest Rate Parity

Relationships Between Inflation, Interest Rates, and Exchange Rates

1-7, 9, 10, 12, 21

1, 2, 5, 6, 8

 

9

10

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

1-4, 6-9, 12

1-13

 

11

12

Managing Transaction Exposure

Managing Economic Exposure & Translation Exposure

1-8, 13-18

2, 3, 5, 8,12

 

13

Direct Foreign Investment

1, 2, 4, 5, 10, 14

11/17   Second comprehensive exam (300 Points)  
 
14
Multinational Capital Budgeting 1, 2, 3, 5, 6, 10, 16
 
16
Country Risk Analysis 1, 3, 4, 6, 13, 14, 17
 

17

Multinational Cost of Capital & Capital Structure

1, 4, 5, 8, 9, 11-14

 

18

19

Long-Term Financing

Financing International Trade

1-5, 7, 8, 10, 13, 14

1-6
 

20

21

Short-Term Financing

International Cash Management

1, 2, 4, 6, 8-10, 13

1-4, 7, 8, 13, 14
12/1   Research completion (200 Points)  

12/5

 

Third comprehensive exam (300 Points)

 

12/7   Research project return & discussion