OFFICE: ST 316HPoint distributionTOWSON UNIVERSITYCOLLEGE OF BUSINESS AND ECONOMICSDEPARTMENT OF FINANCETOWSON, MARYLAND 21252FIN 435.001 & 101INTERNATIONAL FINANCEFall 2009INSTRUCTOR: Dr. Moon-Whoan “Stephen” RheeCLASS HOURS: MW 2:00PM-3:15PM & M 6:30-9:10PM OFFICE HOURS: M 3:15-5:45PM, W 1:30-2:00PM and by appointmentOFFICE: ST 316H OFFICE PHONE: (O)410-704-4075, (F)410-704-3454MAIL BOX: ST 314 E-mail: [email protected] TEXTBOOK International Financial Management, by Cheol. S. Eun and Bruce G. Resnick, 5th,McGraw-Hill Irwin, 2009.RECOMMENDED TEXTBOOKS: Jeff Madura, International Financial Management 9th ed, Thomson, 2008REFERENCE: WALL STREET JOURNAL, Business Week, Fortune, etcWe will use Internet extensively to gather information for the course.COURSE OBJECTIVE: This course extends the principles of finance in the international context. International finance differs from the purely domestic version in two important ways. First, the existence of multiple currencies whose exchange rates float more or less freely in response to market forces is a sourceof additional complication to investment and financing decisions. Second, since multinational corporations operate across the borders of sovereign states, we shall study the effects of national tax, regulatory, and political regimes on corporate decision-making. The first part of the course is an overview of the global financial environment and an introduction to exchange rate behavior. The second part of the course focuses on the theory of the firm in an international setting, with emphasis on the problems of managing foreign exchange exposure, capital budgeting for foreign projects, and international borrowing. PREREQUISITES: FIN 331. FIN 332, FIN 333, and ECON 421 would be useful.COURSE REQUIREMENTS: Your grade will be based on homework assignments and class participation, two mid-terms and one final. The final exam is comprehensive. Each assignment is due before class. Late assignments will not be accepted aftera grace period. I will drop one homework assignment with the lowest mark. Every assignment should be stapled and should be word-processed. Professional appearance does count. If you achieve more than 95% on all two mid-terms, you maywork on a project and tutoring other students in lieu of the final exam. Write down all the answers legibly. You should keep all your exams and assignments so that in case there is any discrepancy you should present them as evidence.Point distribution Two Mid-terms 50 points (15%+35% worst->best) Final 40 pointsHW and Active Participation 10 points ----------------------------------------------------------100 pointsKSAs: Relevant KSAs for this course include Thinking (problem solution, flexible thinking in new ways, integration of accounting and economics subjects, etc.), Business Content and Practical Excellence (computations and estimations).EXPECTATIONS: An average student needs to spend about one hour a day, five hours per week on this subject, exclusive of class hours and preparations for exams. This is a 400 level course. I expect you to exhibit professional behavior. I expect you to come to class prepared and actively participate in class discussions. I also expect you not to do anything to distract the class. I reserve the right to give a lower mark to those who distract the class regardlessof their academic performance. If you miss the class six hours or more, I may assume that you are dropping the course. No excuses (legitimate or not, documented or not) are necessary and will be accepted. Coming into class late orleaving the class in the middle of class (even if you are coming back) without myprior consent may also be considered as missing the class. FINAL GRADING:A 90 or better, A- 88 or better, B 80 or better, B- 78 or better, C 70 or better, D 60 or better, F below 60 EXCUSED EXAMS: No make-ups. However, upon presentation of a University accepted legitimate written excuse (e.g., doctor’s note, University team coach’s note), analternative point distribution system (30% for the one Mid-term, 60% for the final, and 10% for homework and active participation) may be used.NEED HELP? Students who need help during the course should not hesitate to see mewith questions on lecture material or other course content. MISCELLANEOUS: My Schedule & Reading Assignments are tentative and subject to changes as the semester progresses. Please check my e-mail on a regular basis. REPEATED COURSE POLICY: Students may repeat a course only once. For a third attempt, a student must obtain a written approval from the Academic Standards Committee. Students who do not obtain written permission for a third attempt enroll at their own risk.CBE STANDARD: Regardless of the subject matter, the student will be held accountable for proper grammar and correct spelling for all written assignments, including exams.USEFUL WEBSITESIn addition to the websites introduced in the textbook, you may find the following websites useful.http://www.twinkiesproject.com/http://finance.yahoo.com (Yahoo Finance), Use Yahoo's search engine as well.biz.yahoo.com/ifc Country Reporthttp://pacific.commerce.ubc.ca/xr/ (Pacific Exchange Rate Services).www.prenhall.com/phlip and click on International Finance.www.choicefx.com for an interesting simulation game.www.globalcontest.com for international currency trading challenge.www.pforex.com provides useful information about currency trading.www.bmo.com Go to Risk Management in Corporate & Institutional Clients, then go to Foreign Exchange to Currency Forecastswww.cme.com/products/currency/index.cfm Choose Globlex in the Quotes and Data, then choose Swiss francs and options in Currency Products, View the entire file.www.imf.org and www.worldbank.org for useful info and data.www.webcom.com/one/world/foreign.html for useful websites.www.forextrading.com/members/analysis/us_dollar.aspwww.stls.frb.org and click on "FRED." And click on "data files" and click on "monthly exchange rate data" to find access to various time series of the FED Reserve of St. Louis.www.ny.frb.org/pihome/mktrates to find current and historic exchange rates and implied currency option volatility.www.commerzbank/datem/zinsen/ausww.htm to find external values of selected currencies.www.bloomberg.com/marketsfxe.html to find key currency cross rates.www.mexi.com/ECO/index.html to find economic charts of 40 countries (currencies,stock exchanges, interest