Module: International Corporate Finance

Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title	International Corporate Finance
Module Code	FBA1035 (ITS: EF597)
Faculty	DCU Business School	School	DCU Business School
NFQ level	9	Credit Rating	5

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.

*Type*	*Hours*	*Description*
Workload	Full time hours per semester
Lecture	24	No Description
Independent Study	36	Assigned readings
Independent Study	24	Problem sets
Independent Study	41	Exam preparation
Total Workload: 125

Section Breakdown
CRN	20454	Part of Term	Semester 2
Coursework	0%	Examination Weight	0%
Grade Scale	40PASS	Pass Both Elements	Y
Resit Category	RC1	Best Mark	N
Module Co-ordinator	Tongbin Xu	Module Teacher	Liam Hourihane, Marjan Zhaf, Michael Dowling

Type	Description	% of total	Assessment Date
Assessment Breakdown
Formal Examination	End-of-Semester Final Examination	100%	End-of-Semester

Reassessment Requirement Type
Resit arrangements are explained by the following categories; RC1: A resit is available for both^* components of the module. RC2: No resit is available for a 100% coursework module. RC3: No resit is available for the coursework component where there is a coursework and summative examination element. ^* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

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

Indicative Content and Learning Activities

Foreign exchange
Introduction to foreign exchange markets, quotation and parity relationships.

Exchange rate risk
Measurement and management of exchange rate exposure. Evaluation of both accounting and economic exposure.

International Capital Budgeting
Cross border cash flow projections, international taxation rules overview, transfer pricing.

International cost of capital
Raising capital globally to minimize cost of capital or for other strategic reasons; measuring international cost of capital.

International portfolio investments
Evalaution of portfolio holding international assets, framework for decision making regarding international portfolios.

Indicative Reading List

Books:

Alan Shapiro: 0, Multinational Financial Management, 8th, John Wiley and Sons,
DK Eiteman, AI Stonehill, and MH Moffett: 0, Multinational Business Finance, 12th, Pearson,
Richard Levich: 0, International Financial Markets, 2nd, McGraw-Hill,

Articles:
None

Other Resources

None