FIN4300 INTERNATIONAL FINANCE

Class Materials
The assigned text is International Financial Management (West Publishing Company, 10th Edition) by Jeff Madura. Supporting materials are available on Blackboard.

The class requires familiarity with a financial calculator. Although there is no explicit attendance requirement, you should be aware that material covered in class will be highlighted on the test (and will not necessarily be covered in the text).

Course Overview

The course provides an overview of all areas of international finance, with particular attention devoted to the risks created when resources are transferred internationally under uncertain exchange rates. Managing these risks–through the use of currency arbitrage, currency derivatives, currency forecasting and other hedging tools–is an important component of international financial management. It also will consider decisions faced by managers in financing international trade and investment.

Application for the CFA

Designation as a Chartered Financial Analyst (CFA) is a premier credential in finance and is consistent with the core building blocks of the Jon M. Huntsman School of Business. This course prepares students who are interested in taking the first of three tests necessary to earn such a designation in the areas of international trade and capital flows, currency exchange rates, analysis of global operations and currency derivatives. For more information, go to the webpage for the Department of Economics and Finance.

Grading

Grades will be determined on the basis of the following:

Exams (3) 300 points
Final Exam 100 points
Total 400 points

Questions on tests will be both quantitative and qualitative. They will be taken from lecture materials, text readings (complete), back-of-chapter questions and cases.

Extra credit will be offered for completion of three cases (eight points each) taken from the back of selected chapters.

Final grades will be distributed on a “curved” system based on the student in the class with the highest cumulative point total. Sixty per cent of the highest point total is necessary to achieve the lowest passing grade (D). The increment between the highest total and sixty per cent of the highest total is then divided into 10 equal intervals representing possible passing letter grades (A, A-, B+, B, B-, C+, C, C-, D+, D).

Policies on Make-Up Examinations

Make-up examinations are allowed only in the case of incapacitating illness, death in the immediate family or involvement in a University-sponsored activity. If a test is missed for any other reason, the score on that test is zero. However, you can make up that zero by taking a special comprehensive final examination worth 200 points.

Tentative Schedule

Text
Week Topic Chapters

1 Introduction 1

2, 3, 4 International Financial Markets 3, 17

Case 1: Blades (Chapter 3), #3 only.

The appendix to Chapter 3 is required.

5 Exchange Rate Determination 4

6, 7 Currency Derivatives 5

8, 9, 10 Exchange Rate Relationships 7, 8

Case 2: Blades (Chapter 7). Answer all
questions except #4.

11 Forecasting Exchange Rates 9

12, 13 Exchange Rate Exposures 10

Case 3: Blades (Chapter 10), #2 and
#3 only.

14 Long-Term Financial Management 13, 14

15 Financing International Trade 19

ECONOMICS 5600 {FINANCIAL ECONOMICS} SYLLABUS
JOINT Beijing Institute of Technology ? Utah State University Program

SUMMER SEMESTER 2014

INSTRUCTORS:

Course Objectives: 1) To provide a basic economic foundation for the theory and empirical modeling of financial economics; 2) introduce some topics in financial fundamentals, financial decision-making, risk, portfolio analysis and basic options; 3) the use of software, mainly Excel, to derive financial models and financial solutions in basic financial strategy covering example topics from parts 1) and 2) above. The student can then go on to take courses in corporate finance, financial management, or advanced financial economics with this basic information.

Text: Principles of Finance with Microsoft Excel; 2nd Edition, Oxford University Press, 2011. Author: Simon Benninga

Software: The text comes with a disc which provides information on the use of Excel, some problems and exercises. The instructors will provide information on the use of Excel in deriving basic financial solutions and problem sets will be given out in class for students to complete. These problem sets will be used as a learning tool for students to develop understanding of basic financial calculations and strategy as well as learning some handy skills in developing financial relationships which would be used on the job in several career opportunities.

Notes: Some notes will be distributed to students which outline some of the concepts that will be covered in the course, which will be distributed to students via files or will be available on CANVAS for students to enter and obtain files.

Topics Covered in the Course:

Topic 1: Capital budgeting & Valuation: Chs. 1 ? 6
Topic 2: Portfolio analysis, the capital asset pricing model, and valuation (but only valuation of stocks ? bonds require some other information & are topics in other finance courses):
Chs. 8 ? 13 & 16
Topic 3: Introduction to Options: Chs. 20 ? 22

Excel introduction and Excel functions are found in the text in Chs. 24, 25, 26 and 28, and we will review some of these concepts as we move through the topics listed above

Requirements for completing the course:
A— The learning by doing part — Completion of PROBLEM SETS ( 6 ) whereby the student works out problems and modeling with some work completed in class and some work completed outside of class. {70 % of Course Grade}

B?Completion of an overall final exam {30 % of course grade}. This final exam is a check-up of the concepts learned from the chapters covered and to see if the assignments have provided a learning process for students.

Grading
90 % – 100 %= A
88 % – < 90 % = A-
85 % – < 88 % = B+
82 % – < 85 % = B
80 % – < 82 % = B-
77 % – < 80% = C+
73 % – < 77% = C
70 % – < 73 % = C-
65 % – < 70% = D
< 60 % = F If your work starts to be less than 70 % work, then we need to discuss with you some strategies to improve your work and its completion
BUS/FIN 3400, Corporate Finance, Fall, 2012

Class Materials

The text is Essentials of Corporate Finance (Irwin McGraw-Hill, 7th edition) by Ross, Westerfield and Jordan. A calculator capable of performing financial functions is required. I suggest the HP-10B or the TI BA II Plus financial calculators.

Exams and Grades

Four tests worth 100 points each will determine your grade.

Final grades will be distributed according to a “curved” system based on the student with the highest cumulative point total (out of a possible 400). Sixty per cent of the highest total is necessary to achieve the lowest passing grade (D). The increment between the highest total and sixty per cent of the highest total is divided into 10 equal intervals representing all possible passing grades (A, A-, B+, B, B-, C+, C, C-, D+, D).

Questions on tests will be both quantitative and qualitative. They will be taken from lecture materials, text readings (complete), back-of-chapter questions and cases that may be discussed in class.

Tentative Class Schedule

Week Topic(s) Chapter(s)

1 Introduction 1

2 Financial Statements, Taxes and Cash Flow 2

3, 4 Working with Financial Statements 3

5 The Time Value of Money 4

6 Discounted Cash Flow Valuation 5

7, 8 Bond Valuation 6

9, 10 Stock Valuation 7

11 Net Present Value 8, 9

12, 13 Risk and Return 10, 11

14 Cost of Capital 12

15 Short-Term Financial Planning 16

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