Course description

Course code and title: SFB12604 International Finance.

ECTS credits: 10

Category: Compulsory for Bachelor students in International Business.

Prerequisites: Foundation courses in finance/business finance. 

Semester: Spring semester.

Objective: Students will learn a multinational firm’s financial exposure, use of options, calculation of profitability of foreign investment, cost of capital and capital structure.

Content:

- Financial management
- International parity conditions
- Hedging foreign exchange
- Interest rate exposure
- Futures and options
- Cost of capital
- Foreign investment and capital budgeting
- Corporate governance.

Organisation and forms of teaching: Lectures, group work, exercises. The language of instruction is English.

Mandatory assignments: Three papers (group work or individual) must be submitted and approved before signing up for the final individual examination.

Assessment: Four hours written examination. Aids allowed: calculator, mother tongue – English – mother tongue dictionary. Grades: A-F.

Required reading: Eiteman, David K., Arthur I. Stonehill and Michael H. Moffett (2007). Multinational Business Finance, 11th ed. Boston: Pearson / Addison Wesley. 848 s.

Supplementary literature:
Sercu, Piet and Raman Uppdal (1995). International financial markets and the firm. Cincinnati, Ohio: South-Western College Pub. Co. 731 s.
Sarno, Lucio and Mark P. Taylor (2002). The economics of exchange rates. Cambridge: Cambridge University Press. 318 s.

Course lecturer: Roswitha King