Southern
Connecticut State University
Department of Economics and Finance
Spring 2006
| COURSE
NUMBER: |
MBA
574 |
| COURSE
TITLE:
|
Multinational
Financial Management |
| COURSE
DESCRIPTION: |
A
study of the financial issues facing a multinational firm operating
in an international; environment. Topics include balance of payments
concepts, exchange rate theories, corporate treasury management,
international cost of capital and risk management. |
| PREREQUISITES: |
MBA
503 |
| PROFESSOR: |
Dr.
Robert M. Eldridge. Seabury Hall 304
Tel: (203) 876-5046 (H);
(203) 392-5628 (O)
Fax: (203) 392-5254/5863
Email: eldridger1@southernct.edu |
| OFFICE
HOURS: |
Tues:1400
- 1630
Wed: 1700 - 1900
Thurs: 1700 - 1900
or by appointment. |
| CLASS
HOURS: |
Thurs
1935 - 2205, ENA113 |
| MATERIALS: |
1.
Multinational Business Finance, 10th ed, Eiteman, Stonehill
and Moffitt, Boston: Pearson Addison Wesley, 2004
2. Subscription to The Financial Times of London. |
| COURSE
OBJECTIVES: |
This
course establishes a foundation of the financial activities of a
for-profit, publicly traded firm within the structureof an international
free- market setting. At the end of the course the student should
have an appreciation of the basic issues facing the financial manager
within the international framework. |
| INSTRUCTION: |
The
course will consist of lectures, readings from The Financial
Times of London, usage of the World-Wide-Web and a term paper. |
| METHOD
OF ASSESSMENT: |
1.
3 exams @ 20% =
2. Term Paper =
3. "Two minute drills" =
4. Participation and attendance =
5. Ethics questions = |
60%
25%
10%
03%
02% |
| SPECIAL
NOTES: |
1.
"Two minute drills". At the end of each class there will
be a one question quiz lasting two minutes. I will count only the
top 10 grades. This will constitute 10% of the course grade.
2. At the end of the course the student will be requested to complete
a "Course Survey" form, separate and distinct from any
University Evaluation form. This survey helps me in preparing the
course for the next time it is offered. For each form returned,
1/n points will be added to the final grade, where "n"
represents the number of students enrolled in the course based on
the registrar's final class list.
3. The student is permitted and encouraged to tape record lectures
for personal study use only.
4. If any student has a particular disability-related need in order
to participate in this course, such as special seating, note-taking
assistance, use of tape recorders or modified exam conditions you
will need to visit the Disability Resource Office, EN C105A, to
arrange for approved accommodations. If you have other information
you wish to share with me such as emergency medical information,
or arrangements in case the building has to be evacuated, please
tell me as soon as possible.
5. It is recommended that you form yourselves into study groups
for the purpose of doing the homework problems.
6. Cell phones and audible pagers MUST BE TURNED OFF during class
unless the permission of the instructor has been obtained in advance.
Failure to comply will result in a failing grade for the class.
|
| TERM
PAPER: |
The
grade on the paper will be a function of both the finance and
the writing. While I don't expect Pulitzer-prize English, I do
expect the following:
1.
No spelling errors. I accept either British or American spelling
as long as you are consistent.
2. Standard grammar:
a.
Every sentence must have a subject and a verb.
b. Subject and verb will agree in number.
c. No split infinitives.
d. No dangling participles
e. No dangling prepositions.
3.
Use proper punctuation, especially in the use of commas in the
possessive case.
4. Pronouns will clearly reflect the preceding proper noun.
5. Remember, a name like General Motors is a compound singular
noun and thus is never referred to as "they", but
always "it".
6.
Unless requested to do so, do not write from the perspective
of the first person singular.
7.
Use of the verb "to go" as a surrogate for the verb
"to say" will cause me to instantly dematerialize
and most likely haunt your speech/writing patterns for the rest
of your life. In a similar fashion, the word "like"
is not sugar or salt to be casually sprinkled into your speech/writing
habits. It,too, will cause me untold grief and torment; both
errors will most likely guide my marking pen when making out
grades.
8.
If you use a direct quotation, be sure to put it in quotation
marks and properly reference it. If not so done, you will have
committed plagiarism - the worst academic sin - and suffer accordingly.
See also http://cwp.missouri.edu
--> resources --> plagiarism
|
| EXPECTATIONS: |
A.
What you may expect from me:
1.
A strong grounding in International Finance.
2. A willingness to work with you on specific problems you have
with the course or scheduling.
3. A sense of excitement about the field of finance.
B.
What I expect of you:
1.
Come to class prepared by having read the assigned materials
and done any outside work assigned.
2. If you know that you will miss a class, a call to me would
be appreciated.
3. If something does not make sense in the course, you will
ask me either in class, in office hours or call me at home.
4. A sense of what is going on in the world of business and
finance through a daily reading of The Financial Times.
C.
Profile for success or failure. If you go into an exam behind
in the reading and not up with the class discussions or any assigned
homework, you probably will not be successful. If, on the other
hand, you have done the reading and homework and been faithful
in attendance, you should have no problem with any exam you get
from me. |
| |
|
ASSIGNMENT
SCHEDULE
(subject to change)
| DATE |
TOPIC |
CHAPTERS |
PROBLEMS |
REMARKS |
| Feb
18 |
Datastream tutorial - Library |
|
|
1000-1200 |
| Jan
26 * |
Intl Monetary System; Balance of payments |
1,2,3 |
|
|
| Feb
02 |
Foreign Exchange markets; Intl Parity conditions |
4,6 |
|
|
| Feb
09 |
Forex Rate Determination; Catch-up |
7 |
|
|
| Feb
16 |
Accounting, Economic Exposures |
8,9 |
|
|
| Feb
23 |
Forex Exposure |
10 |
|
|
| Mar
02 |
Exam I; cost of Capital |
Exam I; 11 |
|
|
| Mar
09 |
Sourcing equity capital; capital structure |
12,13 |
|
|
| Mar
16 |
Foreign Direct Investment; Political risk |
15,16 |
|
|
| Mar
30 |
Capital Budgeting; M&A |
18,19 |
|
|
| Apr
06 |
Catch-up |
|
|
|
| Apr
13 |
Exam II; Intl Portfolio theory |
Exam II; 20 |
|
|
| Apr
20 |
Repositioning funds |
21,22 |
|
|
| Apr
27 |
Intl Trade Finance |
23 |
|
|
| May
04 |
Derivatives; Swaps |
5,17 |
|
Paper due |
| May
11 |
Catch-up |
|
|
|
| May
18 |
Final Exam |
|
1800-2000 |
|
| |
Paper
In this paper you will select a country and examine
a number of issues over a five year period ending 31 Dec 2001
(if you select a country that is a member of the euro zone,
your five year period must end on 31 Dec 2000.):
1. The nature of the exchange rate regime.
2. The relationship of the country's currency
to the US dollar and the UK pound sterling.
3. The relationship of interest rates in the country
to those of the US and the UK. This will include calculating
the interest rate differentials between the country and the
US and UK.
4. An analysis of the factors driving both the
exchange rates and interest rates, to include issues such as
purchasing power and interest rate parity. This should also
include an analysis of the economy of the country including
its balance of payments.
5. An analysis of the sovereign risks associated
with the country.
6. An evaluation of the desireability of investing
in the country either on a portfolio basis or a foreign direct
investment basis
The paper will be written to conform to the Chicago/Turabian
style. During the course of the term you will be introduced
to a number of databases and web sites that will assist you
in both the financial analysis and writting.
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