Delivered at:: School of Finance

Course type:: Elective course

When:: 4 year, 3 module

Abstract

This course is a corporate finance course of a basic level. The key goal is to provide the student with sufficient knowledge to understand the logic of the modern financial analysis of strategic decisions in multinational corporations including investment and financing policies. The course is focused on the specific features of decision-making process in multinational corporations. The first part of the course constitutes the introduction to the analysis of operating, sovereign and institutional risks of multinational corporation. The second part of the course reviews specific tools and techniques applicable to the investment valuation of multinational company. The third part is devoted to the diversity of instruments available for emerging market company in global capital markets. The course includes 3 case studies on (1) investment valuation in multinational corporation and country risk analysis; (2) managing currency risk exposure; (3) raising capital in global capital markets. To follow the course Basic course in Accounting is a recommended prerequisite. The course covers such topics as types of risks of multinational corporation; currency risk in international projects; global asset pricing models; specific features of investment valuation for international projects; capital structure with the focus on particularities of raising capital in global capital markets.

Learning Objectives

Main features multinational companies and explain why we should pay attention to international character of the company
Key hedging techniques applicable to currency risk of international project
How and when to use derivatives as currency risk hedging instrument
The logic and the mechanism of raising the capital by multinational companies

Expected Learning Outcomes

Be able to apply key asset pricing models to multinational companies
Be able to classify the risks of multinational corporation
Be able to describe the process of raising the capital by multinational companies and analyze different instruments of capital markets available for multinational companies
Be able to evaluate the currency risk exposure
Be able to take into account the international character of the business while making equity valuation
Be able to value the potential investment projects of the multinational company

Course Contents

Topic 5. Multinational Corporation in Global Capital Markets 2: Equity Capital Markets.
Topic 4. Multinational Corporation in Global Capital Markets 1: Capital structure and Debt Capital Markets
Topic 3. Required return of multinational corporation. Cost of capital for international projects.
Topic 6. International Projects: some valuation issues.
Topic 7. Final case study discussion.

Assessment Elements

Final exam (in the form of case study)
Work in class (case 1)
Work in class (case 2)
Final exam (in the form of case study)
Work in class (case 1)
Work in class (case 2)

Interim Assessment

2022/2023 3rd module
0.25 * Work in class (case 1) + 0.25 * Work in class (case 2) + 0.5 * Final exam (in the form of case study)

Bibliography

Recommended Core Bibliography

Corelli, A. Analytical Corporate Finance / Angelo Corelli. – 2nd ed. – Cham, Switzerland: Springer Nature Switzerland AG, 2018. – (Springer Texts in Business and Economics). - Текст: электронный // DB Springer Books [сайт]. - URL: https://link.springer.com/book/10.1007/978-3-319-95762-3
Corporate Finance: Theory and Practice / Pierre Vernimmen, Pascal Quiry, Maurizio Dal-locchio, Yann Le Fur, Antonio Salvi. – 5th ed. – Chichester: John Wiley & Sons Ltd, 2018. – 1010 p.
Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, & Antonio Salvi. (2018). Corporate Finance : Theory and Practice. Post-Print. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hal.journl.hal.02298273

Recommended Additional Bibliography

Multinational business finance, Eiteman, D. K., 2007
Tse, T. C. M. (2018). Corporate Finance: The Basics. Abingdon, Oxon: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1588504
Wiley Finance : International Corporate Finance Jacque, Laurent L. John Wiley & Sons, Incorporated 2014 ISBN: ISBN number:9781118781869, ISBN number:9781118783696

Bachelor’s Programme 'Economics'

Contacts

International Corporate Finance

Course Syllabus