CO3611:03
Multinational Business Finance
| Townsville | HECS Band 2 |
26 hours lectures, 12 hours tutorials, 12 hours workshops. Semester 1.
Staff: Assoc. Professor S Alison.
The study of the theory and practice of corporate international financial management at final year undergraduate level, including the measurement and management of operating, transaction and accounting exposure to foreign exchange rate risk, foreign currency futures and options, interest rate exposure and swaps, the financing of the multinational firm and multinational capital budgeting.
Learning Objectives:
- explain and contrast corporate exposure to transaction and translation exposure to foreign exchange rate risk;
- discuss the concept of operating exposure and the strategies for its management;
- explain the basis of valuation of traded currency options;
- design foreign exchange risk hedging strategies using futures and option contracts;
- understand how interest rate and currency swaps can be used in multinational risk management;
- discuss the implications of segmented and integrated equity markets for multinational firms and portfolio investors;
- solve international capital expenditure decisions.
Assessment by a written assignments (20%); on-course tests (20%); final examination (60%).