Free Essay

Syllabis Finance

In: Business and Management

Submitted By Ossian1900
Words 856
Pages 4
Charles University in Prague Faculty of Social Sciences Institute of Economic Studies

Syllabus JEM 044 International Finance Summer term 2014

Instructor: Pavel Vacek(lectures) Office: 508 E-mail: vacek@fsv.cuni.cz Office hours: by appointment via email Credits: 6 Teaching Assistant: Ihor Kruchynenko (grading, seminars) E-mail:kruchynenko@gmail.com Office hours: by appointment via email Lectures: Tuesday11:00 am – 12:20 pm, room 109 Seminars: Tuesday 3:30 pm – 4:50 pm, room 109 Summer term teaching period: Feb 17, 2014 – May 16, 2014 Examination period: May 26, 2014 – June 30, 2014 and Sep. 1, 2014 – Sep. 12, 2014 Dean’s day (no classes, building closed): April 18, 2014 (Friday) Rector’s day (no classes, building closed): May 14, 2014 (Wednesday) Objective: The aim of this course is to provide an integrated view of international financial markets and the management of multinational firms. The focus will be on money, liquidity, the international payment mechanism, the markets for spot exchange, understanding forward exchange rates, using forwards for international financial management, and capital budgeting. We will discuss managing exposure to exchange rates and country risk, and financing in international capital markets. Required reading: a) The most important will be your class notes from lectures. b) Sercu, Piet (2009). International Finance: Theory into Practice, Princeton University presss. (available ONLINE and also in our library) Focus on chapters: 1, 2, 3, 4, 5, 12, 13 and 21.

Guest Speaker: (from the Czech National Bank)

1

Tentative Content: 1) Introduction and Motivation for International Finance – course outline, key issues in the international business finance. 2) Institutional Background – money, liquidity, central banking, the international payment mechanism, balance of payments, exchange rate regimes. 3) Spot Markets for Foreign Currency – exchange rates, markets for foreign exchange, the law of one price for spot exchange quotes, commodity price parity. 4) Forward Exchange Rates for Currency – forward contracts, relationship between money markets and exchange markets, the law of one price, covered interest rate parity 5) The Market Value of an Outstanding Forward Contract – general formula, the market value at inception and expiration, forward rate and the risk-adjusted expected future spot rate, implications for the valuation of foreign currency assets and liabilities. 6) Interest Rates, Returns and Bond Yields – links between interest rates and effective returns, common pitfalls in computing effective returns, forward forward contracts (FF contracts) and forward rate agreements (FRAs) and their valuation, forward interest rates as the core of the term structures. 7) Using Forwards for International Financial Management – arbitrage, speculation, hedging of contractual exposure, minimizing the impact of market imperfections, using the forward rates in commercial, financial and accounting decisions. 8) Do We Know What Makes the FOREX Markets Tick? – the behaviour of spot exchange rates, the behaviour of real exchange rates, exchange rates and economic policy fundamentals. 9) Predictions – the forward rate as a black-box predictor, forecasts by specialists. 10) When Should a Firm Hedge its Exchange Rate Risk? – hedging and costs of bankruptcy, agency costs, expected taxes, and internal information. 11) Measuring Exposure to Exchange Rates – contractual exposure, operating exposure, accounting exposure. 12) Managing Credit Risk in International Trade – payment modes, how to cope with default risk.

Requirements: Midterm I Midterm II Presentation Written final test Student presentations The list of topics/journal articles, on which you will prepare a presentation(associated with a presentation date), will be posted online using Google Documents at the beginning of March (after registration into courses ends). You will work in teams. The online sign up for the topic will beon “the first come, first served basis”. You will present during seminars. I expect you will make a Power Point 2

presentation. Based on number of students enrolled in class, I will determine how many students should be in a team and how much time each team gets for the presentation. Presentations will be evaluated based on clarity of presentation, ability to answer questions, quality of slides and presentation skills.Each member of the team has to present a part to pass the course.TA will evaluate presentation of each student on a plus/minus basis and I will use this information to decide your final grade if your total score is on the borderline. Grading scheme: Weight in % Presentation – a necessary condition to pass the course Midterm I Midterm II Final written exam Total 25 25 50 100

There will be no make-ups for the midterms. In case of an illness, you score will be determined based on the remaining exams (you need a proof from a medical doctor).

Approximate Grading Scale Your total score in % 86 – 100 66 - 85 50 - 65 Below 50 and/or no presentation Final Mark A B C fail

Exam dates: Midterm I: April 1 (Tuesday, during seminar) Midterm II: May 6 (Tuesday, during seminar) Final Written Exam Dates: Pre-exam period term: - during the last lecture: May 13, 2014 (Tuesday) 1st term: May 27, 2014(Tuesday) 2nd term: June 3, 2014 (Tuesday) 3rd term: June 10, 2014 (Tuesday) Times and rooms for the 1st, 2nd and 3rdfinal exam date will be determined later on.You have to registerin the SIS for the exams.

3…...

Similar Documents

Premium Essay

Finance

...relation to the achievement of the objectives. External users of financial statements: * Investors - they use financial statements to assess the financial strength of a company which impacts on their investment decisions. Existing equity investors use financial statements to monitor their investments and to evaluate the performance of management. Prospective equity investors use financial statements to decide whether or not to invest in the company. * Lenders - they are typically financial institutions that provide short term overdrafts, invoice financing for debtors, term loans for expansion plans, leasing finance for equipment purchases or mortgages for property purchases. Financial Institutions use financial statements to decide whether to grant a company with fresh working capital or extend debt securities (such as a long-term bank loan or debentures) to finance expansion and other significant expenditures. * Suppliers - they use financial statements to assess the creditworthiness of the business. * Government departments and agencies - they use financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company. * Competitors - they use financial statements to benchmark their own financial results to identify variances to target for improvement or exploit as an opportunity. Potential competitors may use financial statements to assess how profitable it may be to enter an industry. The statements show......

Words: 4867 - Pages: 20

Premium Essay

Finance

...Summer 2012 Undergraduate Program Office C140 PBB (319) 335-1037 http://tippie.uiowa.edu/undergraduate/ Finance 2011-12 This form is a planning tool only. To confirm specific graduation requirements, consult your degree audit on ISIS. I. General Education* (22-32 sh) Rhetoric Interpretation of Literature (req: completion of rhetoric) World Languages** Historical Perspectives International and Global Issues Values, Society, and Diversity Natural Sciences (lab not required) Social Sciences (excluding 6E:1, 6E:2) sh grade 4 3 0-10 3 3 3 3 3 Subtotal (I) ________ IV. Finance Major Requirements (20 sh) Required Major Courses* 6F:110 Financial Information Tech (coreq: 6F:100) (grade: S/F) 6F:111 Investment Management (prereq: 6F:100, coreq: 6F:110) 6F:117 Corporate Finance (prereq: 6F:100, coreq: 6F:110) 6A:120 Financial Acct and Reporting** (prereq: 6A:2) Choose three additional electives from the following: 6F:102 Principles of Risk Mgt & Insurance (coereq: 6F:100) 6F:103 Property and Liability Insurance (prereq: 6F:102); or 6F:104 Corp Fin Risk Mgt (prereq: 6F:102, coreq 6F:110); or 6F:105 Life and Health Insurance (prereq: 6F:102); or 6F:106 Employee Benefit Plans (prereq: 6F:102) 6F:108 Topics in Finance I (SP 09 or later, prereq: 6F:100) 6F:109 Topics in Finance II (prereq: 6F:100) 6F:112 Applied Equity Valuation (prereq: 6F:100) (req: 2.80 UI GPA). See Finance Department for special permission. sh grade 2 3 3 3 3 3 *If you entered UI prior to Summer......

Words: 1234 - Pages: 5

Premium Essay

Finance

...finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance financ......

Words: 252 - Pages: 2

Premium Essay

Finance

...GLOBALIZATION AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS QUESTIONS 1. Why is it important to study international financial management? Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance. This mode of operation has become untenable since then. 2. How is international financial management different from domestic financial management? Answer: There are three major dimensions that set apart international finance from domestic finance. They are: 1. foreign exchange and political risks, 2. market imperfections, and 3. expanded opportunity set. 3. Discuss the three major trends that have prevailed in international business during the last two decades. Answer: The 1980s brought a rapid integration of international capital and financial markets. Impetus for globalized financial markets initially came from the governments of major countries that had begun to deregulate their foreign exchange and capital markets. The economic integration and......

Words: 1254 - Pages: 6

Premium Essay

Finance

...| Unit Title: Finance in the Hospitality Industry | INTRODUCTION A business is a commercial enterprise which exists with a view to making a profit.it may be a sole trader business, partnership or a company.( Financial accounting acca f3, study manual for exam in 2013) There are different legal private business sector structure. Sole trader, partnership and limited companies . Sole trader is a business owned by one person . the advantage of this business is that the owner has a full control of his business and all the profit are for him self. The desadvantage relied on unlimited liability. Partnership is a business owned by two people or more. The advantage is about shared decision and the desadvantage is that the profit also is shared. Limited business is a business run by directors and the advantage is shareholders has limited liability and whenever the owner dies the busines will exist. The disadvantage is that all the profit from the busines is shared among members. TASK 1 SOURCES OF FINANCE FOR DIFFERENT BUSINESS INCLUDE APPROPRIATE SOURCES OF FINANCE FOR THE ENCHANTED VALEY B&B. Finance is about the money that a business can use to purchase things that is needed . however, business can need money or finance for three reasons: to buy equipment or premises, to expand the business and to start the business. We have two types of sources of finance: internal sources of finance and external sources of finance. Internal sources of finance is about the......

Words: 2465 - Pages: 10

Free Essay

Finance

...for processing purchase and sales ledger invoices, complete reconciliations, and general finance related within the department. In busy periods also assisting with answering the phone & general admin duties. Duties:  Record ledger accounts including accruals and prepayments.  Prepare Statement of account, fully reconciled and supported with relevant and original approved documents.  Record the supplier’s invoices in the company’s system.  Prepare month wise payment report for the management and HR division.  Prepare material enquires and quotations for the management.  Maintaining inventory records. Accounts Executive Core Solutions Trading Co., Lahore, Pakistan March 2007 – January 2010 Responsible for various areas including; invoicing, expenses, payment runs, reconciliations and dealing with financial queries. Also be required to cover for other staff in the finance team Duties:  Prepare weekly and monthly petty cash report.  Scrutinizing cash vouchers and journal vouchers.  Prepare Statement of account, fully reconciled and supported with relevant and original approved documents.  Payment follow-up and preparation of cheques.  Record and process invoices and payments for suppliers.  Prepare material enquiries and quotations for the management.  Involved in preparing monthly management accounts. EDUCATION  Virtual University of Pakistan Master of Accounting & Finance (Study Continue)  Punjab College of Commerce, Lahore Bachelor of Commerce  Sheikh......

Words: 837 - Pages: 4

Premium Essay

Finance

...WRITTEN REPORT IN FINANCE 2 Punzalan, Joyce Ann M Prof. Ian Tianero BSBA-Management SPECIAL CREDIT FROM SUPPLIERS There are some manufacturing companies that obtain assistance from their customers in the form of payments in advance for goods ordered. There are some cases that suppliers grant long terms of payments on goods that they delivered to their customers. There are privilege specially to the customers who will purchase more goods on them, it is also a competition to those manufacturing company which have the same product. Long terms of payment on goods delivered can be a device to increase the volume of sales of the manufacturing company. TRADE ACCEPTANCE “A written order for a sum of money originating with a creditor and naming a debtor, customarily forwarded to a bank for a collection” It is a time draft drawn in the seller of goods on a buyer, in a trade acceptance the buyer is the acceptor. It is a bill of exchange for the amount of a purchase drawn by the seller on the purchaser, bearing the purchaser signature and specifying time and place for payment. The promises of payment maybe for 30 to 60 90 day period. If the acceptance is made by a finance company, then it is called a trade acceptance. An example would be a finance company affiliated with a manufacturing company that must make large purchases of parts, either domestically or overseas.  Since a finance company does not necessarily carry the same "comfort" weight as a bank, or in order to......

Words: 1927 - Pages: 8

Premium Essay

Finance

...INTRODUCTION TO CORPORATE FINANCE AGENDA • Definition • Types of corporate firm • The importance of cash flows • Agency problem WHAT IS CORPORATE FINANCE? WHAT IS CORPORATE FINANCE? How the company raise funds? (financing decision  capital structure) Sources of fund: 1. Debt 2. Equity What long-lived assets to invest? Assets: 1. Current assets 2. Non-current assets/fixed assets How the company manage shortterm operating cash flows? BALANCE SHEET MODEL OF THE FIRM Total Value of Assets: Total Firm Value to Investors: Current Liabilities Net Working Capital Current Assets Long-Term Debt Fixed Assets 1 Tangible Shareholders’ Equity 2 Intangible What is the most important job of a financial manager? To create value for the firm How? In summary, corporate finance addresses the following three questions: 1. What long-term investments should the firm choose (capital budgeting)? 2. How should the firm raise funds for the selected investments (financing)? 3. How should short-term assets be managed and financed (net working capital activities)? LEGAL FORM OF ORGANIZING FORM SOLE PROPRIETORSHIP Owned by one person PARTNERSHIP Owned by two or more individuals Types of partnership: a. General partnership b. Limited partnership Advantages 1. Easy to form 2. No corporate income taxes 3. Management control resides with the owner of general partners Disadvantages 1. 2. 3. 4. Unlimited liability Life of the business is......

Words: 517 - Pages: 3

Premium Essay

Finance

...and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the today's environment; he/she takes an active role in financing, investment, distribution of profits, and liquidity decisions. In addition, he/she is also involved in the custody and safeguarding of financial and physical assets, efficient allocation of funds, etc. The role of financial manager in case of diversified firm is more complicated in comparison with a small and medium size firm. A diversified firm has several products and divisions and varied financial needs. The conflicting interests of divisional managers make the work of financial manager quite difficult in a diversified firm. ‘…the function of financial management is to review and control decisions to commit or recommit funds to new or ongoing uses. Thus, in addition to raising funds, financial management is directly concerned with production, marketing and other functions within an enterprise whenever decisions are made about the acquisition or destruction of assets’ (Ezra Solomon). Elucidate. All functions, production, marketing etc., require finances. The financial manager supports other functional managers and top management to deploy the scarce resources,...

Words: 1368 - Pages: 6

Premium Essay

Finance

...housing finance industry barely accounts for 30% of the home loans disbursed in the country. The last few years have seen the home loans market growing at a CAGR of over 30 percent. The growth has been mainly fuelled by certain fiscal, social and regulatory drivers: • Changes in demographic profile including increase in the rate of household formation due to structural shift from joint family system to nuclear family • Ever increasing middle class, migration of population and increasing urbanization resulting in acute shortage of housing units Vice President Ambit Corporate Finance Pte. Ltd. Vinod Wadhwani is Vice President, Ambit Corporate Finance Pte Ltd., He is responsible for Mergers and Acquisitions Group in the company. Earlier, he has worked as a marine engineer in merchant navy for eight years. • Increase in disposable income levels due to decrease in marginal tax rates and increase in total income levels • Tax benefits and other fiscal incentives announced in the Union Budgets • Increasing affordability of housing property purchase due to declining interest rates and stable property prices • Decline in the average house cost to annual income ratio to around 4-5 from 11-14 during the last decade resulting in an affordable EMI as a percentage of monthly income • Aggressive lending by banks to the housing sector due to lower credit offtake by the corporate sector, attractive spread and lower non performing assets The major players in Indian housing finance......

Words: 2541 - Pages: 11

Premium Essay

Finance

...CORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 •  Basics & Guiding principles •  Time value of money + Capital Budgeting •  Valuation of CF + Bonds •  Valuation of shares (+ co.’s) •  Financial Analysis (Ratios) •  Financial Planning (EFN) •  à Working Cap. Mgt. (A/R, Inv., A/P) •  Debt Financing •  •  2 FIN 1.5 FIN 2.1 Entrepreneurial Finance / Raising Equity Mergers & Acquisitions / Corp. Restructuring FINANCIAL RATIOS - Example 1 FWvdB/2014 Sample Balance sheet (000’s €) Cash + bank 500 Accounts Receivable 5.000 Inventory 3.000 ------CA 8.500 Machinery Buildings 6.000 4.000 Total assets -------18.500 STB (bank credit line) Accounts Payable CL LTD (Bonds) Nom. Cap. (500.000 x 2) Paid-in-capital (x 3) Retained Earnings Treasury Stock Shareholders’ Capital Total liabilities + OE 3 3.000 3.000 ------6.000 6.000 1.000 1.500 4.500 - 500 6.500 -------18.500 RATIOS: SAMPLE INCOME STATEMENT REVENUES (= Sales = Turnover) CGS = Costs of Goods Sold (materials, labor costs + energy costs incl. 1.000 depreciation) GROSS PROFIT SGA= Selling Administrative & General Expenses (incl. overhead, management, insurance, marketing) EBIT = Earnings Before Interest and Tax Interest......

Words: 1063 - Pages: 5

Premium Essay

Finance

...a negative association between capital structure and profitability except the association between debt to equity and return on equity. Further the results suggest that 89% of total assets in the banking sector of Sri Lanka are represented by debt, confirming the fact that banks are highly geared institutions. The outcomes of the study may guide banks, loancreditors and policy planners to formulate better policy decisions as far as the capital structure is concerned. Keywords : Capital structure, Profitability, Debt, Equity, Return on Equity. T I. Introduction his study focuses on the association between capital structure & profitability of listed banks in the Banks, Finance & Insurance sector. Capital structure is one of the most puzzling issues in corporate finance literature (Brounen & Eichholtz, 2001). The concept is generally described as the combination of debt & equity that make the total capital of firms. The proportion of debt to equity is a strategic choice of corporate managers. Capital structure decision is the vital one since the profitability of an enterprise is directly affected by such decision. Hence, proper care and attention need to be given while determining capital structure decision. In the statement of affairs of an enterprise, the overall position of the enterprise regarding all kinds of assets, liabilities are shown. Capital is a vital part of that statement. The term “capital structure” of an enterprise is......

Words: 4978 - Pages: 20

Free Essay

Finances

...Finances Cassandra Peavey HSM/240 UOP Finances The majority of the funding for the National Coalition for the Homeless comes from the support of the public, foundations, and different organizations (national homeless.org). Many funders are churches and faith based organizations who seek out the mission to end homelessness. The NCH is a nonprofit organization and has been ranked a Four-Star Charity by Charity Navigator in 2009. Due to the NCH being a national foundation, there are many different resources and organizations that will continue to fund this program. With all of the churches and local businesses within areas of where homeless exist, there will always be charities that will be put forth to help the homeless find homes and jobs, and in other cases, medical services. In my home town there is a place called “The Mission”, which is a shelter for homeless men to go until they can get on their feet and make it on their own. The local churches support this house and pay for all utilities and provide food for all who live here. The reliability of funding for this organization is pretty good considering the organization has been funded for the past thirty four years. Since this is a nonprofit organization the funding for this organization is all charity based. Individuals who work for this organization do it to help others. All finances go towards ending homelessness which involves food, shelter, and offering counsel to those who are experiencing......

Words: 466 - Pages: 2

Premium Essay

Finance

... Financial Management in NHS Name: Course: Professor’s Name: University: City (State): Date: Sources of funding There are different sources of financing that the hospital uses to finance its operations. The hospital uses both internal and external sources to fund its operations. One of the internal sources of financing that the hospital utilizes is the revenue that is collected from the services offered to both inpatients and outpatients. The second source of internal finance that the company uses is the sale of fixed assets that are not require in the hospital. The hospital on annual basis carries out an evaluation of the assets that it no longer requires and disposes them as a way of financing its operations. The hospital further uses external methods of financing its activities. One of the main sources of finance is through the use of bank loans and overdrafts. The company seeks for both long-term and short-term loans to finance its operations. Other sources include government grants and charities from non-governmental institutions. Financial stakeholders and their various expectations Stakeholders are referred to those individuals who have an interest in the running of Moorfield’s Eye hospital. These stakeholders may commit their resources towards running of the hospital......

Words: 2363 - Pages: 10

Premium Essay

Finance

...industry since current margin levels are close to close to the established average. Yahoo Finance (2011) provides that Wal-Mart has a market capitalization amounting to $ 191.15 billion and an enterprise value of $ 240.15 billion which shows that Wal-Mart is a highly valuable company in the country. Wal-Mart’s market value has been stable for a period of time indicating that the company has registered steady performance. The company reduced total shareholder equity in 2011 fiscal year amounting to $ 68.5 billion compared to $ 70.5 in 2010 and this can be attributed to reduced retained earnings of $ 64 in 2011 compared to $ 66.4 in 2010 (Yahoo Finance, 2011). The company had total assets worth $ 180 billion compared to $ 170 billion in 2010. Wal-Mart had current ratio of 0.86 which indicates the company is able to pay its current liabilities as and when they fall due while debt to equity ratio for the organization is provided at 0.78 and this indicates that existing assets are sufficient to cover the company’s liabilities (Yahoo Finance, 2011). The company registered return on assets at 8.73% indicating that the company is utilizing its assets well to generate revenue while return on equity is provided at 23.18% thus shareholders are receiving high returns for their investment. Average return on equity is 21.1% while return on assets is 8.7% (MSN, 2011). Yahoo Finance (2011) provides that diluted earnings per share for Wal-Mart amounted to $ 4.70.......

Words: 2568 - Pages: 11

RS4 Badge Emblem Decal Sticker Logo A4 S4 RS Audi boot lid rear trunk tailgate | Facebook | Female Device