30151 - PRINCIPLES OF INTERNATIONAL FINANCE
CLEAM - CLEF - BESS-CLES - WBB - BIEF - BIEM
Department of Finance
Course taught in English
Go to class group/s: 31 - 32
CLEAM (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11) -
CLEF (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11) -
BESS-CLES (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11) -
WBB (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11) -
BIEF (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11) -
BIEM (6 credits - II sem. - OP | 3 credits SECS-P/09 | 3 credits SECS-P/11)
Classes:
31 (II sem.) -
32 (II sem.)
Course Objectives
The aim of this course is to give a very broad picture about international financial markets and international corporate finance moving from the needs of the firm to the financial instruments available to cater to those needs. Subjects that are covered include: international demand for equity and debt financing; the international market for corporate control; in-depth discussion of the economic role of the forward rate and the value of the forward contract; a comprehensive discussion of when and why the firm can increase its value by hedging foreign exchange risk; an economic analysis of the various payment and credit insurance techniques used in international trade. The whole structure of the course is applied, involves real-world examples and is oriented to develop capabilities to understand and use methodologies and practices used on global financial markets.
Intended Learning Outcomes
Click here to see the ILOs of the course BIEF
Knowledge and understanding
At the end of the course student will be able to do:
understand: the international demand for equity and debt financing; the international market for corporate control; the economic role of the forward rate and the value of the forward contract; when and why the firm can increase its value by hedging foreign exchange risk; the various payment and credit insurance techniques used in international trade.
Applying knowledge and understanding
At the end of the course student will be able to do:
evaluate and use methodologies and practices used on global debt, equity and currency markets.
Course Content Summary
- The international market for corporate control.
- International regulation of financial markets.
- Spot exchange markets.
- Currency future markets.
- Currency options and swaps.
- Purchasing power parity.
- International capital budgeting.
- Exchange risk and capital market segmentation.
- International taxation.
- International bond and money markets.
Detailed Description of Assessment Methods
Course assessment for all students (attending or non-attending) is based on one written closed book exam lasting 90 minutes at the end of the term. The exam consists of both multiple choice questions and open ended questions.
Textbooks
P. SERCU, R. UPPAL,
International Financial Markets and the Firm, South-Western College Pub., 1995, 1st edition.
- Chapters: 1, 5-7, 9-11, 16-17, 21-23
R.A. BREALEY, S.C.MYERS, F. ALLEN,
Principles of Corporate Finance, McGraw-Hill Companies.
Prerequisites
Knowledge of the basic topics covered in corporate finance, corporate valuation, and option valuation courses, such as Bocconi courses 30017, 30149, 30150.
Last change 13/06/2016 14:24