Eun, C.S., & Resnick, B.G. (2012). International financial management (6h ed.). Boston: McGraw-Hill Irwin. ISBN: 9780078034657
I also have a required exam in week 5 listed below. Do you complete exams?
Required Exam
Program Comprehensive Examination. Peregrine Academic Services.This exam must be purchased from the Ashford EdMap bookstore as part of your required materials for this course. It will appear in the EdMap materials list for the course as the Masters Academic Degree Level Common Professional Component (CPC)-based Comprehensive Exam.
Assignment 1: Proposed International Business Acquisition
Review the requirements of the Final Assignment in Week Six. This Week One assignment is the first step in creating the comprehensive Final Proposal that will be due in Week Six. Carefully select the three countries you will chose to analyze because you will be using these countries throughout the course.
Dorchester, Inc. is a U.S. based conglomerate. They have seen a marked trend towards their competition expanding operations internationally. Dorchester, Inc. is interested in purchasing a company that specializes in consumer electronics.
Research three potential takeover targets that are based in three different countries and have substantial operations overseas.
Provide a three to five page (excluding title and reference pages) economic assessment to Dorchester, Inc. management regarding the pros and cons of buying a company that is based in each of the three countries. Use non-course materials to support your contentions and supporting documentation as necessary.
In addition to the requirements above, your paper:
Assignment 2: Predicting Exchange Rates
Dorchester, Inc has asked you to help forecast exchange rates for the three potential countries you have selected for your proposal.
In a three to five page paper (excluding title and reference pages), plot the exchange rates from the past year in each of the three countries. Identify and describe any patterns that can be seen. What are the possible explanations for these patterns? What exchange rates do you predict for 1 year from now?
In addition to the requirements above, your paper:
Assignment 3: Designing an Exchange Management Program
Review the Case Application†at the end of Chapter 9: Exchange Risk Management at Merck.
Using the 5-step process outlined, develop your own 5-step program for managing exchange risk for your proposed acquisition. Your proposal must be three to five pages (excluding title and reference pages) in length.
In addition to the requirements above, your paper:
Maintaining Market Share |
Deere & Company exports tractors to Spain, but the strong dollar against the Euro hurts sales of Deere Tractors in Spain. In the Spanish market, Deere faces competition from German and Italian tractor makers, such as Fendt and Claas, whose operating currencies are the Euro. What kind of measures would you recommend so that Deere can maintain its market share in Spain? Respond to at least two of your classmates’ postings.
Managing Risk |
If you work for a publically traded company, download the company’s annual report. If you don’t work for a publically traded company, download the annual report of one of your favorite products (e.g. Apple or Dell). Search through the report and look for the section regarding Managing risk†(it may be under a different name, but it is in there). Describe how this company manages economic, or some other type of risk. Respond to at least two of your classmates’ postings.
Assignment 4: Swap Options
Interest Rate Swap provides a brief description of interest rate swaps. Review the Interest Rate Swap Article and design a swap that could potentially be used in your company acquisition.
Provide an analysis to Dorchester, Inc. management advising them of the swap options you have selected and why it would be suitable for the acquisition. The proposal must be three to five pages (excluding title and reference pages) in length.
In addition to the requirements above, your paper:
Discussions DUE 8/7/2014
To participate in the following Discussion Forums, go to this week’s Discussion link in the left navigation:
Review exhibit 13.11 in the text. Then go to Bloomberg and look up the last six months of one of the countries stock indices listed. Speculate why the index has performed as it has. Respond to at least two of your classmates’ postings.
You are an investment banker advising a Euro bank about a new international bond offering it is considering. The proceeds are to be used to fund Eurodollar loans to bank clients. What type of bond instrument would you recommend that the bank consider issuing? Respond to at least two of your classmates’ postings.
Discussions Week 5 Due 8/14
To participate in the following Discussion Forums, go to this week’s Discussion link in the left navigation:
Can a foreign acquisition target be assessed like any other asset? Provide your argument as to why or why not. Respond to at least two of your classmates’ postings.
Define the concept of real options. Describe an instance in your professional life (current employer or past employer) where a real option could have been useful. Respond to at least two of your classmates’ postings.
Assignments Week 5
To complete this assignment, go to this week’s Program Comprehensive Exam link in the left navigation:
Program Comprehensive Exam
Complete the comprehensive exam, which will take approximately one to two hours and will be graded based on your score. The full instructions for the exam are posted on the exam site, which is accessed via the link in the left navigation.
Assignment 6: Final Proposal
Focus of the Final Proposal
Read the Chapter 18 Mini Case 1: Dorchester, Ltd.
Using the material developed for Weeks One through Five, write a fifteen to twenty page proposal to Dorchester, Ltd.’s management team. In your proposal, advise them of an acquisition target based on research previously conducted. Your proposal should also include:
Use non-course materials to support your contentions and incorporate pro forma financial statements and supporting documentation to support your proposal.
Writing the Final Proposal
The Final Proposal:
Discussions
To participate in the following Discussion Forums, go to this week’s Discussion link in the left navigation:
There is some debate on whether Multinational Corporations (MNC’s) increase risk when borrowing foreign currencies. Those in favor of borrowing state that lower costs of financing can be achieved and it improves their ability to compete. Those against state that when an MNC borrows a foreign currency, they are essentially speculating on future exchange rate movements. Choose a side and defend your argument. Respond to at least two of your classmates’ postings.
You are a cash manager of a MNC based in the United States. One of your responsibilities is to gain the highest yield for your treasury cash. Go to Bloomberg and click on a country to review its interest rates. Select a country to invest in for one year. Describe why you chose that country and your expected yield for the next year. Respond to at least two of your classmates’ postings.
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