Students

AFIN867 – International Financial Management

2015 – S1 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Damian Bridge
Contact via Please contact via ILearn
Please check iLearn for consultation details
Lecturer
Ryle Perera
Contact via Please contact via ILearn
Please check iLearn for consultation details
Credit points Credit points
4
Prerequisites Prerequisites
ACST603 or AFIN858 or (admission to MIntRelMIntComTrdeComLaw or MIntTrdeComLaw or PGDipIntTrdeComLaw or PGCertIntTrdeComLaw)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit is concerned with the analytical techniques of international finance and investment. Topics include global flow of funds and international financial markets, foreign exchange markets, interest parity, arbitrage and currency speculation, purchasing power parity, real effective exchange, commodity swaps, short and long-term hedging of foreign currency risks, futures and options in currencies.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment Tasks

Name Weighting Due
Assignment 25% See ilearn for due dates.
Class Test 15% Week 6
Quizzes 10% Refer to ILearn
Final Exam 50% University Exam Period

Assignment

Due: See ilearn for due dates.
Weighting: 25%

No extensions will be granted. Late tasks will be accepted up to 72 hours after the submission deadline.  There will be a deduction of 20% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 40% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.

Please note that this is a group assignment.  Groups will be organised in class early in the semester.

Please see ilearn for submission details.
On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Class Test

Due: Week 6
Weighting: 15%

There will be no supplementary test.

Students who have applied for special consideration and it has been approved will receive a verbal examination by two staff members.

You are permitted ONE A4 page of paper containing reference material printed on both sides. The material must be handwritten. The page will not be returned at the end of the examination.

More details regarding the exam will be made on iLearn closer to the exam date.
On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Quizzes

Due: Refer to ILearn
Weighting: 10%

There shall be 5 quizzes worth 1% each.

There will also be a  additional 5% allocated for the creation of topic relevant questions in peerwise to prove their understanding of the material.

 

No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.  In this case the average score will be awarded.
On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Final Exam

Due: University Exam Period
Weighting: 50%

To be eligible to pass the unit, a pass is required in the final examination.

You are permitted ONE A4 page of paper containing reference material printed on both sides. The material must be handwritten. The page will not be returned at the end of the examination.

The final exam will consist of an envigelated online exam.
On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Delivery and Resources

 

Classes

·      Students should attend one 3 hour class per week.

·      The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/ 

Prizes

·        Prizes for this unit (if applicable). http://www.businessandeconomics.mq.edu.au/undergraduate_degrees/prizes_scholarships

 

Required and Recommended texts and/or materials

·  International Financial Management: 7th Edition Eun & Resnick, Publisher: McGraw-Hill Irwin Copyright 

·    Set chapters for each topic’s lecture are drawn from this text and identified in the lecture topic table below. Students should read these chapters prior to the lecture, so that they are familiar with the material to be covered. This will greatly enhance your learning experience.

·      Required texts can be purchased from the Macquarie University Co-op Bookshop.

Technology Used and Required

  • Financial non-programmable calculators can be used in the unit. A financial calculator is not essential as a scientific non-programmable calculator should meet all your needs (calculation of the Internal Rate of Return (IRR) is not required in any of the assessment tasks). Note: Only non-programmable calculators without text retrieval functionality are allowed for use in the unit’s assessments tasks.
  • Excel or similar spreadsheeting tool will be required to complete the assignment.
  • Students should have access to the internet.

Unit Web Page

  • Course material and announcements are available on the learning management system (iLearn).

Unit Schedule

Week No.

Date (Week Beginning)

Topic

Chapters

1

23 February

Foundations of International Financial Management 1

1 & 2

2

2 March

 

Foundations of International Financial Management 2

 

3 & 4

3

9 March

The Foreign Exchange Market 1

 

5 & 6

4

16 March

The Foreign Exchange Market 2

 

7

5

23 March

Foreign Exchange Exposure

8 & 9

6

30 March

Mid Semester Exam

 

7

20 April

World Financial markets 1

11

8

27 April

World Financial Markets 2

12 & 13

9

4 May

World Financial Markets 3

14

 

10

11 May

World Financial Markets 4

15

 

11

18 May

Financial Management of the Multinational Firm 1

16 & 17

 

12

25 May

Financial Management of the Multinational Firm 2

18, 19 & 20

13

1 June

Consultation

 

Note: 

These dates are subject to change.

All chapters relate to the relevant chapter numbers in the prescribed textbook.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Results

Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.

Supplementary Examinations

http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/. 

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

PG - Discipline Knowledge and Skills

Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Assignment
  • Class Test
  • Quizzes
  • Final Exam

PG - Critical, Analytical and Integrative Thinking

Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Assignment
  • Class Test
  • Quizzes
  • Final Exam

PG - Research and Problem Solving Capability

Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Assignment
  • Class Test
  • Quizzes
  • Final Exam

Changes from Previous Offering

There has been a slight re-weighting of assessments.

Addition of Peerwise requirement for students.

Addition of Chapter 15 to learning materials.

Research and Practice

·      This unit gives you opportunities to conduct your own research