1 San Francisco State University Finance 536: International Finance Fall 2017 Instructor: Mr. Ming Li Office: Sci 358 Phone: 415-338-6082 Email: [email protected]Office Hours: Mon,4:30-7; Wed, 2:40-4:10 Prerequisites: A grade of C- or better in Fin 350; IBUS 330 and ISYS 263 or pass computer information systems proficiency test. Course Description and objectives: The course covers the international financial environment for corporate financial management and international investments. Topics include balance of payment, foreign exchange markets, international parity conditions, foreign exchange risk management and international financial markets. Traditional corporate finance functions such as investing decision, financing decision, and cost of capital are addressed in the international context. The objective is to obtain a basic understanding of the workings of international financial markets, the currency risk in international investing, and management of exchange risk exposure. Course materials: Required Textbook:Eiteman, Stonehill, and Moffett, Multinational Business Finance, Addison Wesley, 14th edition. In addition to the text, following sources provide extensive information on current issues of international trade and finance: The Wall Street Journal, The Economistand Financial Times. A financial calculator is also required. Class Website:Our class website for course agenda, documents, exercises and announcements is Use your SFSU id and password to access them. Homework There will be weekly homework assignments. You are not required to turn in your homework. Solutions will be posted on the course web site. In general, homework exercises require critical thinking and quantitative skills. Homework exercises are extremely helpful to your understanding of course materials. You shall prepare yourself for the final exam by working on these problems. To help improve your problem-solving skills, I will discuss homework problems as well as additional exercises regularly in class throughout the course.
2 ExamThere will be three exams. Each exam contains several (essay or problem solving) questions and takes about 90-120 minutes. Each exam has 30 points. It is non-cumulative and covers materials since the previous exam. For the exam you will be allowed to bring in a calculator, and an 8½ by 11 sheet of paper on which you can write, type, or copy anything that you like (yes you can write on both sides!) I suggest that you use the paper sheet for economic and financial formulas. No other materials may be used during the exam.