THE CATHOLIC UNIVERSITY OF AMERICA
DEPARTMENTOF BUSINESS & ECONOMICS
MGT 389: INTERNATIONAL CORPORATE FINANCE
FALL 2010
Credit Hours: 3
Prerequisites: MGT 426
Classroom: McGivney LL012
Class Hours: Tuesdays &Thursdays: 11:10 to 12:25
Instructor: Dr. Jamshed Uppal, Assoc. Professor Office: 303/4 McMahon Hall
Phone: (202) 319-4730
E-mail: Uppal@cua.edu
Office Hours: Tuesdays &Thursdays 12:30 - 2:00 p.m. & by appointment
Course Description: The course centers on the international dimensions of the financial decisions of
multinational corporations emphasizing the limitations of finance theories and practices when applied in
the international environment. Specific topics include foreign exchange risk management; international
sources of funds; working capital management, cost of capital and financial structure of international
businesses and capital budgeting of foreign projects.
Instructional Methods: Lecture
Required Text:
Moffett, Stonehill, Eiteman,
“Fundamentals of Multinational Finance,” 3rd Edition
Pearson-Prentice Hill
Recommended Text: The Wall Street Journal
Course Goals: The goal of the course is to develop an understanding of the financial decisions of
multinational corporations in the international environment.
Goals for Student Learning: At the conclusion of the course, the student will be able to apply financial
theories and management tools in making corporate financial decisions in the international environment.
Students will have an understanding of the markets for foreign exchange, futures and options on foreign
exchange, techniques and practices in the management of foreign exchange exposure, workings of the
international banks, and financial markets, principles of international portfolio and direct investment,
issues in capital structure and cost of capital, trade financing, cash management and capital budgeting.
Course Requirements: Term grade shall be based on points distributed as follows:
Mini-cases & participation
15%
Assignments
15%
Mid-term Exam
35%
Final Exam
35%
Total:
100%
The Final Exam will not be cumulative.
Assessment: The following can serve as an approximate guide to the final grade:
Over 90% = As; 80 - 89% = Bs; 70 - 79% = Cs; 60 - 69% = D; Below 60% = F
Expectations and policies
Academic honesty: Academic honesty is expected of all CUA students. Please review the
complete texts of the University policy and procedures regarding Student Academic Dishonesty,
including requirements for appeals, at http://policies.cua.edu/academicundergrad/integrity.cfm and
http://policies.cua.edu/academicundergrad/integrity.cfm.
Policies and Expectations: Exams will consist of fill-ins, short-essay questions and problems
designed to test your understanding of concepts, factual material and problem-solving abilities. No
make-up exams will be given except for University-approved reasons. The final exam is not
cumulative.
Class lectures are intended to highlight the text material and to provide supplementary support.
Occasionally additional material may be assigned to augment the text. You are responsible for all
the assigned material. It is assumed that you have read the relevant material before class. It is
highly recommended that you also attempt the chapter problems before class.
Homework problems and case write-ups will be collected at beginning of the next class period.
Homework will be due as scheduled and may not be made up. You are expected to participate in
class discussions and will be required to present selected cases to the class.
Accommodations for students with disabilities: Any student who feels s/he may need an
accommodation based on the impact of a disability should contact the instructor privately to
discuss specific needs. Please contact Disability Support Services (at 202 319-5211, room 207
Pryzbyla Center) to coordinate reasonable accommodations for students with documented
disabilities. To read about the services and policies, please visit the website:
http://disabilitysupport.cua.edu.
2
Date
31-Aug
2-Sep
7-Sep
9-Sep
14-Sep
16-Sep
21-Sep
23-Sep
28-Sep
30-Sep
5-Oct
7-Oct
12-Oct
14-Oct
19-Oct
21-Oct
26-Oct
28-Oct
2-Nov
4-Nov
9-Nov
11-Nov
16-Nov
18-Nov
23-Nov
25-Nov
30-Nov
2-Dec
7-Dec
9-Dec
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
Tue
Thu
14-Dec
Tue
COURSE SCHEDULE
Chapter & Topic
1. Globalization and Multinationals
2: Financial Goals and Corporate Governance
5. Foreign Exchange Market
6. International Parity Relations
8. Foreign Exchange Derivatives
9. Transaction Exposure
10. Operating Exposure
11. Foreign Currency Exposure
No class - Administrative Wednesday
Mid-term Exam
12: The Global Cost and Availability of Capital
13: Source Equity Globally
14: Financial Structure and International Debt
15: Interest Rate and Currency Swaps
16: International Portfolio Theory and Diversification
17: Foreign Direct Investment Theory and Strategy
Thanksgiving
18: Political Risk Assessment and Management
19: Multinational Capital Budgeting
Final Exam - 10:30 to 12:30
3
Assignment
# Chapter 1: Globalization and the Multinational Enterprise
# Chapter 2: Financial Goals and Corporate Governance
# Chapter 3: The International Monetary System
# Chapter 4: The Balance of Payments
# Chapter 5: The Foreign Exchange Market
# Chapter 6: International Parity Conditions
# Chapter 7: Foreign Exchange Rate Determination and Forecasting
# Chapter 8: Foreign Currency Derivatives
# Chapter 9: Transaction Exposure
# Chapter 10: Operating Exposure
# Chapter 11: Translation Exposure
# Chapter 12: The Global Cost and Availability of Capital
# Chapter 13: Source Equity Globally
# Chapter 14: Financial Structure and International Debt
# Chapter 15: Interest Rate and Currency Swaps
# Chapter 16: International Portfolio Theory and Diversification
# Chapter 17: Foreign Direct Investment Theory and Strategy
# Chapter 18: Political Risk Assessment and Management
# Chapter 19: Multinational Capital Budgeting
# Chapter 20: International Trade Finance
# Chapter 21: Multinational Tax Management
# Chapter 22: Working Capital Management
# Web Chapter: Cross-Border Mergers, Aquisitions, and Valuation
4