International Financial Management
In this course the students are confronted with the day-to-day responsibilities of the chief financial officer in a middle size to large company operating in an international context. They will gain skills and insights in international (cross border) financing techniques. Students are introduced to the concepts of the value of money and their impact on financial decisions, the management of current assets and liabilities, the use of financial ratios as part of the financial controlling aspects of the job and the use of marketable securities in an international context. Aspects of currency and interest rate exposure are dealt with in the context of the international financial markets. Although the course follows a well recognised standard work on the subject of financial management and policy, we adapt the contents of the programme to the current developments in the financial and business world.
Approach
The course comprises of class lectures and discussions, which are illustrated with cases and problems.
Subjects
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Goals and functions of finance.
Creation of value, investment versus financing decisions. -
Concepts in valuation.
Time value of money; present values; internal rate of return; bond returns; risk concepts. -
Financial ratio analysis.
Introducing liquidity, debt, coverage and profitability ratios. -
Short-Term Asset and Liability Management
Cash and liquidity management
Short-Term Financing
International Cash Management -
Investments in international marketable securities
Study materials
James C. Van Hoorne; Financial Management & Policy; 12th ed., Prentice Hall, International Edition
Assessment details
Written “open book” examination.
