Dominican University

BAD 375 International Finance

Fall 2006

Professor: Martin A. Brown E-Mail: marty1314@sbcglobal.net

Phone: 708-567-1339 Office: Fine Arts 113, Hours: Tue/Thur 4-5 pm or by appt.

Text: International Financial Management, Madura, 8^th Edition

Financial Calculator is highly recommended

Grading:

Tests (3 at 25%) 75% Scale

Case study/ Project 15% 94-100 A

In Class Assignments 15% 90-93.9 A-

Total 100% 87-89.9 B+

83-86.9 B

80-82.9 B-

77-77.9 C+

73-76.9 C

70-72.9 C-

60-69.9 D

Below 60 F

Course Description (per Dominican website)

The structure and operation of foreign exchange markets: spot, forward, futures and options; factors determining spot and forward exchange rates. Measurement and management of foreign exchange exposure risk. Financing international transactions. Working capital policies in an international context. Operations of the international money and capital markets.
Prerequisites: Economics 191, 192 and Business Administration 350

Course Objectives

Segment One – Chapters 1 to

August 29^th Class Introduction and Chapter One

August 31^st Chapter Two- International Flow of Funds

September 5^th Chapter Two (cont’d) and Ch. 3 International Financial Markets

September 7^th Chapter 3 and Appendix 3, Investing in Int’l Financial Markets

September 12^th Chapter 4 Exchange Rate Determination

September 14^th Chapter 4 Exchange Rate Determination

September 19^th Chapter 5 Currency Derivatives

September 21^st Chapter 5 Currency Derivatives

September 21^st Chapter 5

September 26th Chapter 5 and test review

September 28^th Test #1

Segment Two-Financial Assets

October 3^rd Chapter 6 Interest Rates

October 5^th Chapter 6 Interest Rates/Chapter 7 Bonds

October 10^th Chapter 6 Bonds

October 12^th Chapter 8 Risk and Rates of Return

October 17^th Chapter 8 Risk and Rates of Return

October 19^th Chapter 9 Stocks and their Valuation

October 24^th “ “ “ “

October 26^th Chapter 9 and Test Review

October 31^st Test #2

Segment Three-Investing in Long Term Assets

November 2^nd Chapter 10 Cost of Capital

November 7^th Chapter 10 Cost of Capital

November 9^th Chapter 11 Basics of Capital Budgeting

November 14^th “ “ “ “ “ “

November 16^th Chapter 12 Cash Flow Estimation

November 21^st Chapter 12 Cash Flow Estimation

November 23^rd-30^th Chapter 14 Capital Structure

December 5^th Test #3 (Subject to Revision)