Page path:

Multinational Business Finance and Investment

 
English Term

Multinational Business Finance and Investment

Prüfungsnummer(n)

2845942

Compulsory Course/Required Elective

Compulsory Course

Type of Course

Lecture

Language

English

Faculty/Faculties
Offered in

Winter Term

Credits

5 ECTS

Credit Hours

4

Type of Course Assessment

Written Examination

Duration of the Exam

90 minutes

Grading

Decimal Grade

Admission Requirements
For students with prior knowledge in:
• Introduction to Finance and Financial Accounting
• Fundamentals of financial mathematics

Objectives

 

Students understand how Multinational Corporations raise funds on the global Capital Markets and how to assess the risks and the success factors that are specific for operating worldwide currency risk, interest rate risk, commodity pricing risk and political risk are covered indepth.

Students learn how to apply the standard methods for investment appraisal (NPV / Discounted Cash Flow methodology) in an international framework.

The module supplies detailed knowledge and skills to be prepared for the study focus “Corporate Finance”.

Content

 
  • Introduction: Finance and Investment of the Multinational Firm
  • Global Financial Environment: The International Monetary System
  • The Causes and Consequences of the GFC
  • The Foreign Exchange Markets
  • International Parity Conditions
  • Foreign Currency Derivatives
  • Interest rate and Currency Swaps
  • FX Determinants and Forecasting
  • Foreign Exchange Risk:
  • Transaction Exposure
  • Foreign Exchange Risk: Operating Exposure
  • Financing the global firm: Cost of Capital
  • Financing the global firm: Equity markets
  • Financing the global firm: Debt Markets
  • Global Investment and Portfolios: Foreign Direct Invest

Recommended readings

 
  • David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett: Multinational Business Finance,13th ed., Addison-Wesley 2013 (Pearson International Edition)
  • Richard A. Brealey, Stewart C. Myers, Franklin Allen: Principles of Corporate Finance, 8th ed., McGrawHill 20

Workload and Breakdown of Credits

 
5 ECTS x 30 hours = 150 hours, combined out of the following:
 
  • Course attendance: 60 hours
  • Preparation / homework / self-study : 30 hours
  • Time for exercises and group work: 30 hours
  • Exam preparation: 30 hours
  • Exam time: 90 minutes
 
 

Teaching and Learning Methods

 
  • Interactive teaching (lecture with integrated practical problems)
  • The lecture is supplemented by questions for discussion / practical problems / case studies which are either solved by way of teamwork in class or assigned as homework tasks
  • Microsoft Excel spreadsheets are developed in class to illustrate complex decision-making situations with examples that are close to reality

Download