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Steven R. Cox, Ph.D.

F571 – International Corporate Finance

Indiana University Kokomo

Summer 2009

Dr. Steven Cox

 

(Click here for a print friendly copy)

Time:

5:45 – 9:00, Tuesdays and Thursdays  (June 30 – August 11)

Room:

KO 112

Office Hours:

4:45  - 5:45, Tuesdays and Thursdays (and by appointment and walk in)

Office:

KO 174J 

Work Phone:

(765) 455-9314

Mobile Phone:

(317) 696-0571

Email:

scox@iuk.edu 

Web Site:

http://www.iuk.edu/~bussrc/

Required Text:

Madura, International Financial Management, Abridged 9th Edition

 

Course Objectives

 

This course is designed to provide an understanding of the international environment in which firms and individuals operate and an introduction to international financial management. The course will include an overview of the international financial markets and the relationship between these markets. Students will learn the factors that influence exchange rates and how exchange rates affect trade, why countries adopt a particular exchange rate system and the implications of this decision, and how international arbitrage links prices, exchange rates and interest rates around the world. The course will examine how firms manage the risks of doing business internationally using financial instruments such as forward, futures, and options contracts. The course will examine international investment decisions, and how firms finance their projects in international capital markets. 

 

Grading 

 

Midterm Exam

150

Final Exam

150

Case Presentation

50

Attendance

50

Country Paper and Presentation

100

Total Points

500

 

 

 

 

Grading Scale 

 

96% - 100%

A+

90% - 96%

A

89% - 90%

A-

86% - 89%

B+

80% - 86%

B

79% - 80%

B-

76% - 79%

C+

70% - 76%

C

69% - 70%

C-

66% - 69%

D+

60% - 66%

D

59% - 60%

D-

Below 59%

F

 

 

 

 

Exams

Unexcused absences will result in zeros on exams. Exams may be a combination of multiple choice, problems, and short essays. The midterm exam will be on July 21st. The final exam will be on August 11th.        

Attendance

 

For each of the eleven non-exam evenings, five points will be awarded for attendance with a maximum points set at 50. Partial attendance will result in partial points.

 

Case Presentation

 

Students will lead the discussion of the end of the chapter case relating to Blades, Inc. The first part of the presentation should include an approximately ten minute review of the case situation and requirements. The next (approximately 20 minutes) will be spent leading the class through an analysis of the case that includes solutions.  Leading the case presentation is worth 50 points. Points will be awarded based on the quality of the analysis, the presentation style, and the ability to engage the rest of the class in the process.

 

Country Paper and Presentation

 

Each student will investigate the impact of the current recession on a country other than the United States. The investigation should include factors that made the country more or less vulnerable to the decline and the prognosis for recovery. Special emphasis should be placed on unemployment and production figures, the impact on the country’s currency, the actions taken by the country’s central bank, government incentive programs, prospects for inflation, etc. The result should be a 5–7 page paper and a 15-minute class presentation. The overall project is worth 100 points. The presentation will be worth 30 points. The layout, organization, spelling, and grammar will be worth 30 points. The remaining 40 points will be allocated to the finance content.  The paper is due by the class period following the presentation.

 

 

 

Course Schedule

 

Chapter

Topics and Presentations 

Date

1

2

Multinational Financial Management

International Flow of Funds

June 30

3

International Financial Markets

July 2

4

Exchange Rate Determination

(Blades, Inc. Chapter 1) (Blades, Inc. Chapter 2)

(MBA Country Presentation)

July 7

5

Currency Derivatives

(Blades, Inc. Chapter 3) (Blades, Inc. Chapter 4)

(MBA Country Presentation)

July 9

6

Government Influence of Exchange Rates

(Blades, Inc. Chapter 5) (Blades, Inc. Chapter 6)

(MBA Country Presentation)

July 14

7

International Arbitrage and Interest Rate Parity

(Blades, Inc. Chapter 7)

(MBA Country Presentation)

July 16

 

 

Midterm Exam  

 

July 21

8

Relationships among Inflation, Interest Rates, and Exchange Rates

(Blades, Inc. Chapter 8)

(MBA Country Presentation)

July 23

10

Measuring Exposure to Exchange Rate Fluctuations

(Blades, Inc. Chapter 9) (Blades, Inc. Chapter 10)

(MBA Country Presentation)

July 28

11

Managing Transaction Exposure

(Blades, Inc. Chapter 11)

(MBA Country Presentation)

July 30

12

13

Managing Economic Exposure and Translation Exposure

Direct Foreign Investment

(Blades, Inc. Chapter 12) (Blades, Inc. Chapter 13)

(MBA Country Presentation)

Aug 4

14

16

Multinational Capital Budgeting

Country Risk Analysis

(Blades, Inc. Chapter 14) (Blades, Inc. Chapter 16)

(MBA Country Presentation)

Aug 6

 


Final Exam  

 

 

Aug 11

 

 

 

 

Schedule of Presenters (to be determined on June 30)

 

 

Date

Topic

Student

July 7

(Blades, Inc. Chapter 1)

(Blades, Inc. Chapter 2)

MBA Country Presentation -

 

July 9

(Blades, Inc. Chapter 3)

(Blades, Inc. Chapter 4)

MBA Country Presentation -

 

July 14

(Blades, Inc. Chapter 5)

(Blades, Inc. Chapter 6)

MBA Country Presentation -

 

July 16

(Blades, Inc. Chapter 7)

MBA Country Presentation -

 

July 23

(Blades, Inc. Chapter 8)

MBA Country Presentation -

 

July 28

(Blades, Inc. Chapter 9)

(Blades, Inc. Chapter 10)

MBA Country Presentation -

 

July 30

(Blades, Inc. Chapter 11)

MBA Country Presentation -

 

Aug 4

(Blades, Inc. Chapter 12)

(Blades, Inc. Chapter 13)

MBA Country Presentation -

 

Aug 6

(Blades, Inc. Chapter 14)

(Blades, Inc. Chapter 16)

MBA Country Presentation -