Class History: International Financial Management (Summer 2017)
This page summarizes all the classes (including extra classes) of the course International Financial Management in the Summer 2017 semester.
Summary
Class time: Monday 2:20 PM (Room: 601). Wednesday 2:20 PM.
Regular classes: 19
Extra classes: 10
Total classes: 29
Class 1
May 8, Time 2:20 - 3:35, Room 601
Chapter 1. Introduction to finance. An overview of the finance major. A brief description of six courses of finance major. Differences between accounting and finance.
Class 2
May 15, Time 2:30 - 3:30, Room 601
CLASS TEST 1: Surprise Test: Fundamentals Checkup. [view results]
Solution to Class Test 1.
Opportunity cost. The k. An introduction to time value of money.
Class 3
May 17, Time 2:30 - 4:00, Room 601
Different types of values - book value, market value, economic value. Values based on time - present value (including math), future value (including math). Lemon problem explained.
Class 4, Class 5 (Extra)
May 22, Room 601
● Time 2:30 -3:30 (Class 4 - regular class)
● Time 3:35 -4:25 (Class 5 - makeup class for the class of July 19)
The basics of income statements. General format of income statement. Brief explanation of each item of income statement.
Brief explanation -- depreciation, salvage value, accumulated depreciation, net fixed asset.
Balance sheet -- basic format and explanation of each item. How to link the retained earnings from income statement and balance sheet.
Class 6
May 24, Room 601, Time 2:25 -4:00
Chapter 2. What MNCs are -- two definitions. The goals of MNC. Three theories of international business. Agency problem. The reason behind higher agency problem in MNCS.
Class 7
May 29, Room 601, Time 2:00 -3:30
How to eliminate agency problems. Management style of MNCs: Centralized vs. decentralized. International business models.
Class 8
June 5, Room 601, Time 2:00 -3:15
Risks in international business. Exchange rate risk. Risk from change in the economy of host country. Political risk.
Chapter 2. How to find out the current account balance of a country, from a list of transaction data (math).
Class 9
June 7, Room 601, Time 2:30 -4:00
Balance of payment. Current account section of balance of payment. Capital account of balance of payment. Factors that affect international trade flow and current account balance. How to fix a negative balance of trade problem. The real outcome of a positive balance of trade for a country like Bangladesh. Factors that affect foreign direct investment.
Midterm Exam
June 15, Room 603, Time 10:00 - 11:30.
Syllabus: Chapter 1 to 3. [view results]
Class 10
July 5, Room 601, Time 2:20 - 3:20 PM
Chapter 4. Derivatives and currency derivatives explained with examples. Types of derivatives. Forward contract. Long and short position. Math: payoff from forward contract.
Class 11
July 10, Room 601, Time 2:25 - 3:40 PM
Futures contract. Differences between forward contract and futures contract. Options -- types. Math: payoff from call option when underlying asset is USD.
Class 12
July 12, Room 601, Time 2:35 - 4:15 PM
Math 1: Fx speculation.
Math 2: Fx speculation supported by short term bank loan.
Math 3: Fx hedging.
Math 4: Fx hedging supported by short term bank loan.
Class 13
July 17, Room 601, Time 2:30 - 4:00 PM
Applications of call options. Hedging using forward contract. Solving mathematics problems: Lecture note 740 math no. H-2, H-3, G-2, G-3.
Class 14
July 24, Room 601, Time 2:40 - 4:00 PM
Chapter 5. Exchange rate systems - fixed, floating, managed float, pegged. Differences between fixed, floating, and managed float system. Bid, ask, and bid-ask spread. Math: bid-ask price.
Class 15, Class 16 (Extra)
July 26, Room 601
2:40 - 3:40 PM (Class 15)
3:40 - 4:55 PM (Class 16)
Math: Bid-ask spread.
Chapter 7. Exchange rate forecasting methods: market based, technical, fundamental, PPP based. Forecasting exchange rate using PPP method: underlying principles. Math: forecasting exchange rate using PPP.
Class 17, Class 18 (Extra)
July 31, Room 602
2:45 - 4:00 PM (Class 17)
4:00 - 5:00 PM (Class 18)
Implementing error correction mechanism in forecasting. Standard error of estimate and MAPE. Math: how to correct forecast result using MAPE.
Assignment - 1 (individual).
Class 19, Class 20 (Extra)
August 2, Room 602
Time 2:45 - 3:00 PM (Class 19)
Time 4:00 - 5:00 PM (Class 20)
Chapter 8. Finding value. PV and NPV. Differences between the NPV formula of domestic and multinational projects. Components of capital and their costs. Mathematical problem: finding the WACC of a multinational project.
Class 21, Class 22 (Extra)
August 7, Room 601
2:35 - 3:35 (Class 21)
3:35 - 4:35 (Class 22)
Mathematical problem: How to find out the value of a multinational project?
Class 23, Class 24 (Extra)
August 9, Room 1002
2:40 - 3:40 (Class 23)
3:40 - 5:00 (Class 24)
Finding the value of the the whole multinational firm: Theoretical basic.Cash Flows of MNCs: Profile 1, 2, and 3.
Chapter 6. Measuring exchange rate movement. Interpretation of exchange rate movement. Classical factors behind exchange rate movement.
Class 25
August 16, Room 1002, Time 2:45 - 4:00
Classic factors behind exchange rate movements: detailed explanation of four factors with graph. Long term impact. Interaction of factors.
Class 26 (Extra)
August 16, Room 1002, Time 4:15 - 5:30
Model test. Click here for details. [view results]
Final Exam
Syllabus: Chapter 4, 5, 6, 7, 8.
Date: August 24 at 11:00 AM. [view results]
Class 27 (Extra)
August 26, Room: IT Lab, Time 3:00 - 4:15 PM
Project: Exchange rate forecasting based on fundamental method using computer program: Theory and basics. Click here for details about this class.
Class 28 (Extra), 29 (Extra)
August 26, Room: IT Lab, Time 4:15 - 6:45 PM
Project: Exchange rate forecasting based on fundamental method using computer program: Practical demonstration. Click here for details about these classes.