International Financial Management 725
Winter Quarter 2006

INSTRUCTOR:

Ingrid M. Werner

OFFICE:

818 Fisher Hall

CLASS TIMES:

Mondays and Wednesdays, 3:30-5:18 p.m.; 5:30-7:18 p.m.

CLASSROOM:

Shoenbaum Hall 215

OFFICE HOURS:

Tuesdays, 1:30-3:00 p.m.

E-MAIL:

werner@cob.osu.edu

PHONE:

(614) 292-6460


Class Updates
Last Updated: March 17, 2006

*Course Outline and Schedule (.pdf)
*Brief Course Description (below)
*Schedule (.htm)
*
Links to International Finance Web-Sites

Slides for Session 1 and Session 2


Documents to Download for Registered Students

*Slides

*Optional Readings
*Tools

*Homeworks
*Study Problems
*Old Exams

The course
This course extends the principles of investment analysis and financial management to the international environment. The goal is to provide a framework for making financial decisions in an international context. The course is divided into three sections: 1) the international financial environment, 2) the globalization of world capital markets, and 3) topics in international corporate finance. Students will be exposed to a broad range of topics in international finance, including some of the latest developments in global financial markets. 

   

Prerequisites

        Bus-Adm 555 and Bus-Fin 620 are the formal prerequisites for this course. Bus-Fin 721 and 722 are recommended.

        If you are shaky on topics such as: discounted cash flows and net present value, calculating risk and returns, and the basics of statistics (mean, variance, correlations, random variables, and regression analysis), dust off your old notebooks now and get yourself up to speed with this material.

        You should also be comfortable with Excel.
 

Course resources

  • Textbook (required): Cheol S. Eun and Bruce G. Resnick, International Financial Management 3nd edition, 2003 (McGraw-Hill). Web-site.
  • Course Packet: Contains the HBS Note 9-292-084 “Note on Cross-border Valuation” and HBS Case 9-204-144 “Offshoring at Global Information Systems, Inc.” It is available at Cop-Ez.
  • Lecture Notes: Available in the “Documents to Download for Registered Students” above.

 

Grades

Grades for the course will be determined as follows.

        Homework Assignments (3):                 15%

        Case                          5%

        Midterm, February 8                             40%

        Final Exam, March 13                           40%

  

Homework assignments

         There will be three homework assignments worth 5% of your grade each. Assignments are due at the start of class and late assignments are not accepted (a grade of zero is assigned) except for the most serious reasons (see below). If you miss an assignment for a legitimate reason, the weight for the assignment is re-allocated to the final exam.

         You may work alone or with a partner. If you would like to work with a partner, but do not know anyone in the class, let me know and I will form a clearinghouse. If you work with a partner, one copy of the assignment should be turned in and both students will receive the same grade. Assignments should be typed or written neatly.

         Optional: Students are encouraged to work through the relevant end of chapter questions in the textbook. Solutions for relevant questions are posted on the course webpage. These are posted as “read-only” files in .pdf format. You can view the solutions, but cannot print or save them.

 

Exams

         There will be one midterm and one final exam. Both exams will be comprehensive and will cover material from lectures, assigned readings, and assigned problems. You are allowed to bring a calculator and one 8 by 11 formula sheet (both sides). You must hand in your formula sheet (even if it is empty) with the exam. Note also that you must write the midterm in the section you are registered in.

         You are allowed a formula sheet so that you do not have to memorize the formulas. In return, I expect that formula sheets include formulas only – i.e., equations and symbols. Definitions and examples are not allowed. If you have definitions or examples on your formula sheet that are related to a question on the exam, you will not be given credit for that question, i.e., you will get zero on the entire question. There are no exceptions to this policy.

         Absence from any exam will not be excused except for the most serious reasons. Such serious circumstances must be validated in writing by an appropriately accredited processional (i.e., medical doctor) and you should notify me prior to the scheduled exam that you will be absent. If you miss the midterm for a legitimate reason (defined above), the weight for the midterm will be re-allocated to the final exam. There are no exceptions to this policy.


Accommodation
Students who request help will be given reasonable accommodation through the advice and assistance of the University Office of Disability Services.

Appeals
Grading errors should be corrected. Appeals must be in writing, within one week after the graded work is returned, not the date you first look at it. The appeal should include a description of the question(s) that need to be reexamined as well as an explanation of why the original grade was incorrect. In general, the entire document will be checked for grading errors, and correcting these could either raise or lower the overall score.

Academic Integrity
You have affirmed to adhere to the following honor statement:

 

As a member of the Fisher College of Business community, I am personally committed to the highest standards of ethical behavior. Honesty and integrity are the foundation from which I will measure my actions. I will hold myself accountable to adhere to these standards. As a leader of the community and business environment, I will pledge to live by these principles and celebrate those who share these ideals.

 

In addition, the University’s Code of Academic Integrity is designed to ensure that the principles of academic honesty and integrity are upheld. All students are expected to adhere to this Code. Please visit the following website for more information on the University’s Code of Academic Integrity and possible sanctions: http://oaa.osu.edu/procedures. In accordance with University Faculty Rule 333-5-487, all instances of academic misconduct will be reported to the Department and the Committee on Academic Misconduct which recommends appropriate sanctions to the Office of Academic Affairs. Academic misconduct includes, but is not limited to, giving or receiving information during an exam and submitting plagiarized work for academic requirements.

 

International Finance Web-Sites:

International Financial Markets:

Stock Markets:                                   Nasdaq
                                                           NYSE (has links to all world markets)

Stock Market Indices:                         Morgan Stanley Capital International
                                                           International Finance Corporation (Emerging Markets)

Exchange Traded Index Funds:            Indexfundsonline
                                                           Nasdaq's Web-side

American Depository Receipts:            Bank of New York

Exchange Rates:                                  UBC daily and historical data
                                                           Federal Reserve Bank of New York

Currency Options:                               Philadelphia Stock Exchange
 

Resources and Readings in International Finance:

International Finance Resources:          Yahoo Finance
 

Readings in International Finance:         The Economist
                                                           Financial Times