International Business Finance

This subject is not offered in 2013.

Estimated total time commitment of 120 hours per semester

FNCE30002 Corporate Finance or equivalent. This subject is only available to Master of Commerce students, Bachelor of Commerce (Honours) students who are specialising in Finance and those who have successfully completed the Postgraduate Diploma in Finance or who have successfully completed 100 points of the Master of Finance.

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Foreign exchange market microstructure; tests of parity relationships; measurement and management of foreign exchange exposure; international asset pricing models; international cost of capital and capital structure; international capital budgeting; multinational business decision making; international debt and equity markets; international banking.

On successful completion of this subject students should be able to:

• Apply no-arbitrage conditions to determine the links that must hold between domestic and foreign interest rates, forward exchange rates and spot exchange rates;
• Evaluate the factors that are important in determining the extent to which a firm will hedge against changes in foreign exchange rates;
• Recognise factors that are important in determining exchange rates;
• Generate portfolios that contain domestic and foreign bonds and domestic and foreign stocks that are mean-variance efficient;
• Discuss how taxes can affect international investment decisions;
• Explain how to evaluate foreign projects.

• 3-hour end-of-semester examination (70%)
• Assignments totalling not more than 3000 words (30%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Collaborative learning
• Problem solving
• Team work
• Statistical reasoning
• Application of theory to practice
• Interpretation and analysis
• Critical thinking
• Synthesis of data and other information
• Evaluation of data and other information