International Finance (ILV)


Course lecturer:


 Michael Ausserwinkler
Specialization AreaInternational Finance
Course numberM4.05172.20.551
Course codeIntFin
Semester of degree program Semester 2
Mode of delivery Presencecourse
ECTS credits2,0
Language of instruction English

By the end of this course the students should:
understand the basics of the foreign exchange market and international monetary systems
evaluate the capital structure of multinational companies
review and propose short- and long-term financing strategies of multinational companies
apply different methods and tools to value projects and firms in an international context

"Integrated Financial Management" course

I. Introduction to International Finance
Types of Firms - Ownership vs. Control of Corporations
The Stock Markets
Foreign Exchange Market, International and European Monetary Systems

II. Financial decision making - Interest rates and time value of money
Capital decisions in multinational companies
Capital structure (equity vs. debt)
Long-Term financing (incl. leasing)
Debt and taxes
Short-term financing: Working capital management and financial planning

III. Valuing Investment Projects
Investment decision rules (NPV, IRR, payback)
Fundamentals of capital budgeting - Forecasting earnings and cash flows
Choosing among alternatives

Berk J. & DeMarzo P. (2014). Corporate Finance. 3rd ed. Harlow: Prentice Hall/Pearson.

Eiteman, K. D., Stonehill, I. A , Moeffett, M. H. (2013). Multinational Business Finance. 13th ed. Harlow: Prentice Hall.

Pilbeam K. (2013). International Finance. 4th ed. Basingstoke: Palgrave Macmillan.

Lecture, discussion, examples, business cases, presentations

Class participation: 30%
Presentation: 30%
Exam: 40%