FIN556 – International Financial Management
Portland State University
School of Business Administration
Winter 2016
Professor: Michael Dimond
Email: mcdimond@pdx.edu
Voicemail: (503) 208-5725
Office: SBA435
Faculty Website: http://www.pdx.edu/sba/fp-michael-dimond
LinkedIn: http://www.linkedin.com/in/michaeldimond
Facebook: http://www.facebook.com/ProfDimond
Twitter: http://twitter.com/ProfDimond
COURSE DESCRIPTION
Development and study of a framework for the financial decisions of multinational businesses;
management of working capital, investment and financing decisions of a firm in an international
environment; foreign exchange markets, exchange risk, and international diversification.
Prerequisite: BA 303, Actg 381 for Fin 456; 551 or 513 for Fin 556.
The primary purpose of the course is to examine and understand the international aspects of financial
management for the multinational business enterprise. The course builds upon the principles of
basic business finance and applies the basic valuation framework of financial decision making to
companies that operate in many countries. In addition issues regarding currency and interest rate
risk management as well as cross border investing and borrowing are covered.
TIME COMMITMENT
University courses require time and effort. The general guideline is for every credit hour you should
spend 2-3 additional hours working on the coursework. This is not an easy course, so it tends
towards 3 extra hours per credit. This means you should expect to spend 4 hours a week involved in
class interactions PLUS another 12 hours studying, practicing and improving your skills. This course
may be a commitment of 16-hour per week or more.
APPROACH
There will be some lecture but this is a case-based course, designed for graduate students. Each week
we will discuss one or two cases in class. In addition, each student will submit analysis based on the
case for grading.
Lecture and discussion will cover a specific topic. Students should read the material and try to work
the end-of-chapter questions and problems prior to the lecture. This will enhance the learning
experience and make the class discussion more productive. Please notice that the material is not
covered in the same order as the reference text presents it.
COURSE MATERIALS
Required Cases - Available in this coursepack from HBS:
https://cb.hbsp.harvard.edu/cbmp/access/43639321
Recommended reference Text:
Multinational Financial Management, 10th Edition by Alan C. Shapiro, published by Wiley
GRADING
Case discussion 40% (based on quality and quantity of individual participation)
Case analysis 40% (based on individual work submitted)
Take-home exam(s) 20% (in total)
Grading Scale: 100-90%=A, 89-80%=B, 79-70%=C, 69-60%=D, Below 60%=F
COURSE POLICIES
1. Late work is not accepted.
2. Personal digital assistants mobile phones, mini-computer or other communications devices
are not allowed for in-class exams. Financial calculators are allowed and recommended
3. Failing to demonstrate honesty and integrity will result in a grade of ZERO.
4. Students are held responsible for all announcements regarding class.
PROPOSED SCHEDULE Subject to change as needed. Students are held responsible for all
announcements regarding class.
Topic
Fundamentals in Understanding Int’l
Finance
Case
Handout – no case
Reference
Chapters
1,2, 3
Week 2
Foreign Trade, ST Financing &
Managing Working Capital
Noble Group
18, 19
Week 3
Week 4
Week 5
Holiday
FX Market, Currency Futures
Options, Swaps & Interest Rate
Derivatives
n/a
Hedging Currency Risks at AIFS
Gaz de France
n/a
4, 7
8, 9
Week 6
Exposure & Hedging Strategy
10, 11
Week 7
International Portfolio Investing
R.J. Reynolds International Financing
Walt Disney Company's Yen Financing
Innocents Abroad: Currencies and
International Stock Returns
Week 8
Int'l Financing & National Capital
Markets, Euromarkets
Week 1
Week 9
15
Global Equity Markets: The Case of Royal 6, 12, 13
Dutch and Shell
Nestle and Alcon--the Value of a Listing
Corp. Strategy & FDI, Costs of Capital Globalizing the Cost of Capital and
14, 16, 17
& MNC Capital Budgeting
Capital Budgeting at AES
Groupe Ariel S.A.: Parity Conditions and
Cross-Border Valuation
Week 10
Finals
Week
Tax, Tariffs & Transfers
Corporate Inversions: Stanley Works and
the Lure of Tax Havens
Tax-Motivated Film Financing at Rexford
Studios
Finals Week Schedule: http://www.pdx.edu/registration/final-exams
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