Students understand how Multinational Corporations raise funds on the global Capital Markets and how to assess the risks and the success factors that are specific for operating worldwide currency risk, interest rate risk, commodity pricing risk and political risk are covered indepth.

Students learn how to apply the standard methods for investment appraisal (NPV / Discounted Cash Flow methodology) in an international framework.

The module supplies detailed knowledge and skills to be prepared for the study focus “Corporate Finance”.

• Introduction: Finance and Investment of the Multinational Firm
• Global Financial Environment: The International Monetary System
• The Causes and Consequences of the GFC
• The Foreign Exchange Markets
• International Parity Conditions
• Foreign Currency Derivatives
• Interest rate and Currency Swaps
• FX Determinants and Forecasting
• Foreign Exchange Risk:
• Transaction Exposure
• Foreign Exchange Risk: Operating Exposure
• Financing the global firm: Cost of Capital
• Financing the global firm: Equity markets
• Financing the global firm: Debt Markets
• Global Investment and Portfolios: Foreign Direct Invest

• David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett: Multinational Business Finance,13th ed., Addison-Wesley 2013 (Pearson International Edition)
• Richard A. Brealey, Stewart C. Myers, Franklin Allen: Principles of Corporate Finance, 8th ed., McGrawHill 20

• Course attendance: 60 hours
• Preparation / homework / self-study : 30 hours
• Time for exercises and group work: 30 hours
• Exam preparation: 30 hours
• Exam time: 90 minutes

• Interactive teaching (lecture with integrated practical problems)
• The lecture is supplemented by questions for discussion / practical problems / case studies which are either solved by way of teamwork in class or assigned as homework tasks
• Microsoft Excel spreadsheets are developed in class to illustrate complex decision-making situations with examples that are close to reality