School of Management
Spring 2005
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Course Description
My aim is to work with you on both concepts that are useful in dealing with
international currency issues when operating across national boundaries and on
recent developments in the world’s capital markets. The context of the course
will be financial issues of importance to corporations even as the instructional
focus remains individual development. The course aims to develop professional
effectiveness in understanding selected developments and in being able to work
with concepts useful in valuation, investment and financing.
As you will see below, the course is broken into four major areas of concern.
They are foreign exchange exposure management, foreign investment, corporate
funding for established and emerging companies, and international mergers and
acquisitions. These topics should be viewed as being selectively chosen and do
not comprise complete coverage of the international finance field. Some areas
that could easily be included, for example, cash management, use of particular
capital markets, or exchange rate forecasting, have been excluded on the basis
of time availability.
This course is designed for practicing business people. To this end, there will be
substantial class discussion and case analysis of topical issues. Much of the
learning will come from classmates and from individual study and preparation for
our discussions.
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Course Structure
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More Details on “MeetingPlace” Conference System Use
A class teleconference is usually recorded and can be reviewed over the phone.
To access the recording of the entire meeting, students can dial the same phone
number and select option 3 "review a meeting" and then follow the prompts to
enter the correct meeting month, date and meeting ID.
Instructor Information:
Course Materials
You are responsible for procuring a copy of each case. There is a list below.
Cases will normally be available through the campus and off-campus book
stores.
The book chosen for reading and reference is Global Corporate Finance, 6th
Edition by Suk Kim, Seung Kim, and Kenneth Kim.
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Harvard Business School Cases:
Ivey Case:
Clearnet Communications 9B00N004
Darden Case:
MediMedia International, Ltd. UVAF1032
Course Hardware
Grading Basis:
Informal Reports:
You can check your class participation and other grades by accessing the “My
Grade” icon on WebCT after the weekly grade is released. This feature will not
be immediately available.
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Class Identification:
Each student will be given a name card for use in class. Please use it to help me
learn your name.
Class Participation:
Group Presentations:
There will be two class team presentations. The prepared presentations should
be in PowerPoint format and include audio to explain and expand each slide in
the presentation. Financial information exhibits can be attached in Excel or Word
or .rtf format. Contact Karthik for more help on this topic.
Individual Assignments:
Expected to be:
Final Examination
Do not claim written work as your own if it is not so. The university has policies
and discipline procedures regarding scholastic dishonesty. Detailed information
is available at http://www.utdallas.edu/student/slife/dishonesty.htm
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Course Date Section of Topic Case Assoc.
Week Course Readings
1 1/12 Introduction Information, Kim 1,2,3,4
Formation of
groups
2 1/19 Foreign How might XR MSDI-Alcala de Henares Kim 5
Exchange be formed? (1987, Spain)
Exposure What are
Management Parities?
Does it Matter?
3 1/26 What is FX Tiffany & Co. Kim 6
Exposure? (1993, Japan)
First written assignment given
4&5 2/2 FX Exposure Effect of FX Jaguar, plc, (1984, U.K.) Kim 9
& Management, rates on value,
2/9 Foreign International Group Presentation #1 Jaguar
Investment investment
6 2/16 Foreign Foreign Walt Disney Company’s Yen Kim 7
Exchange Currency Swaps Financing (1985, Japan)
Exposure Second written assignment given
Management
7&8 2/23 Operational and N.V. Philips Electronics – Currency Kim 9,14
& Financial Hedging Policies (1990,
3/2 Exposure Netherlands)
9 3/9 Hedging, Swaps Gaz de France (1986) Kim 8
The group presentations are scheduled for February 9 and March 30.
First paper will be assigned January 26, due February 2.
Second paper will be assigned February 16, due March 2.
Final paper will be assigned April 13, due April 27.