Module Specifications..
Current Academic Year 2023 - 2024
Please note that this information is subject to change.
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Description This module examines financial decision-making in an international evironment. This is accomplished by first studying the market for currencies and understand the economic equilibrium relationships that affect the value of the currencies. Students will develop understanding of measuring and managing exchange rate risk faced by companies. Investment appraisal will also be studied from an international perspective in order to develop a framework for decision-making regarding foreign direct investments and international portfolio investments. Raising capital globally also allows firms to lower their cost of capital and students will examine the opportunities and risks associated with international financing. | |||||||||||||||||||||||||||||||||||||||||
Learning Outcomes 1. Demonstrate an understanding of currency markets and parity relationships in these markets. 2. Appraise the exchange rate risk faced by a company. 3. Appraise the various exchange rate risk management strategies and identify the benefits and risks of each one. 4. Contrast alternative for raising capital globally. 5. Evaluate international foreign direct investments by projecting expected cash flows and applying valuation techniques. 6. Evaluate international portfolio investments. | |||||||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and Learning Activities
Foreign exchangeIntroduction to foreign exchange markets, quotation and parity relationships.Exchange rate riskMeasurement and management of exchange rate exposure. Evaluation of both accounting and economic exposure.International Capital BudgetingCross border cash flow projections, international taxation rules overview, transfer pricing.International cost of capitalRaising capital globally to minimize cost of capital or for other strategic reasons; measuring international cost of capital.International portfolio investmentsEvalaution of portfolio holding international assets, framework for decision making regarding international portfolios. | |||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||
Programme or List of Programmes
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Date of Last Revision | 04-JUN-10 | ||||||||||||||||||||||||||||||||||||||||
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