Required in stage
Optional in stage
First term
Both terms
Not organised
This year
Next year
Alternating years
External
Prerequisites
Identical coursesInternational Corporate Finance (B-KUL-HME40A)
De Beckker Kenneth (coordinator) | De Beckker Kenneth Aims
- Identifies and evaluates the different types of foreign investment.
- Values an international business project using a discounted cash flow approach and a real option analysis.
- Illustrates the difference between national and international funding models and understands the importance of adjusting the valuation method to the international environment in which a company is operating.
- Identifies and quantifies the foreign exchange risk for the different aspects of business operations (import/export transactions, foreign loans and investment, ...) and proposes efficient solutions to manage these risks.
- Determines the cash flows of financial derivatives (e.g. currency options and forwards) and can use these derivatives to manage foreign exchange risks in an international company.
- Independently or in team, efficiently carries out a clearly defined assignment.
Previous knowledge
The admission criteria for the programme can be found in the programme catalogue. It is advisable to have completed the following course first: Introduction to financial reporting.
Identical courses
This course is identical to the following courses:
HMB38A : Advanced Financial Management
Is included in these courses of study
Activities
6 ects. International Corporate Finance (B-KUL-HME40a)
EnglishFormat: Lecture
39 
Second termContent
Introduction: Why do you need to understand international finance?
Module I: Currencies and Asset Prices
- The foreign exchange market
- Parity conditions
- International capital markets
Module II: Understanding foreign currency derivatives
- Foreign currency futures
- Foreign currency options
Module III: Multinational exchange rate exposure
- Transaction exposure
- Operating exposure
Module IV: Multinational capital budgeting and financing
- Foreign direct investments
- Country and political risk
- International capital budgeting
This ex-ante list of contents is conditional to changes during the academic year.
Course material
Compulsory study material: Course material provided on Toledo. This course material consists of the lecture slides, screencasts, exercises and case studies.
Aditionally recommended study material: International Financial Management, International Edition (3rd Edition). Geert Bekaert & Robert Hodrik. ISBN 9781107111820
Format: more information
The course combines interactive lectures with exercise sessions and class discussions on case studies. Students may be asked to prepare exercises or a case study, or to read a particular part in the handbook to prepare for a particular session.
In addition to the handbook, there will be additional course material provided on Toledo. This course material consists of the lecture slides, screencasts, exercises and case studies.
Evaluation
Evaluation: International Corporate Finance (B-KUL-H75092)
Explanation
Evaluation caracteristics
The first two modules (Currencies and Asset Prices and Understanding Foreign Derivatives) will be evaluated based on online tests that will be made available on Toledo during the semester. Each test consists of 10 multiple choice questions. The first test handles the chapter on the Foreign Exchange Markets. The topics of the second test are “Parity conditions” and “International capital markets”. The third online test is based on Module II (Currency derivatives). An average score will be calculated based on the scores of the three individual tests. This average score counts for 20% of the final grade. A correction for guessing is used. More info see Toledo.The tests will be made available on Toledo one week before the deadline, so students have one week to complete the test. The deadlines for each test will be communicated at the start of the semester (in class and on Toledo).
The major part of the evaluation (80% of the final grade) consists of a written exam at the end of the semester. The exam is composed of open questions, business case style, and will cover the last two modules of the course (Multinational exchange rate exposure and Multinational capital budgeting and financing). A practical use of the concepts studied will be tested based on exercises, reflection and potentially a case study.
Determination final result
The final grade is a weighted average of the online tests (20%) and the final exam (80%).
Second exam opportunity
The second exam session will be similar to the first one:
- 20% of the total grade will be based on the average score on the three online tests. If the student already completed the tests, and passed based on the average score, the student doesn’t have to retake the tests. The score is maintained. If the student hasn’t completed the tests, or failed based on the average score, the student has to retake all three tests. The deadline for completion of the tests is the day BEFORE the final exam in the second exam session.
- 80% of the grade is based on the score on the final, written exam. The format of the exam will be similar to the one in the first exam session.