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Specialization (SP) Module 4: International Finance

Module name (EN): Specialization (SP) Module 4: International Finance
Degree programme: Business Administration, Bachelor, ASPO 01.10.2020
Module code: BBWL-2020-664
Hours per semester week / Teaching method: 4V (4 hours per week)
ECTS credits: 5
Semester: 6
Mandatory course: no
Language of instruction:
Written exam (90 min. / Can be repeated semesterly)

[updated 30.03.2021]
Applicability / Curricular relevance:
BBWL-564 Business Administration, Bachelor, ASPO 01.10.2012, optional course
BBWL-564/664 Business Administration, Bachelor, ASPO 01.10.2016, optional course
BBWL-2020-664 Business Administration, Bachelor, ASPO 01.10.2020, semester 6, optional course
WIBAS450/550M4p Industrial Engineering, Bachelor, ASPO 01.10.2013, semester 5, optional course, corporate governance, course inactive since 02.12.2019
60 class hours (= 45 clock hours) over a 15-week period.
The total student study time is 150 hours (equivalent to 5 ECTS credits).
There are therefore 105 hours available for class preparation and follow-up work and exam preparation.
Recommended prerequisites (modules):
BBWL-2020-140 Mathematical Economics 1
BBWL-2020-240 Mathematical Economics 2 and Statistics 1
BBWL-2020-310 Investment and Financing

[updated 22.02.2020]
Recommended as prerequisite for:
Module coordinator:
Prof. Dr. Matthias Gröhl
Lecturer: Prof. Dr. Matthias Gröhl

[updated 01.10.2016]
Learning outcomes:
After successfully completing this course, students will have gained insight into the life cycle of a company and will be able to reflect upon the financial challenges of each phase of the life cycle. In doing so, they will be able to identify and name the contributions of stakeholders to the financing of the company.
Participants will be able to state the basic theoretical principles of financing theory. In addition, they will be able to illustrate the relationship between return and risk. They will also be able to explain the criteria of capital structure decisions. Students will be able to determine the sources and uses of equity, debt and mezzanine capital.
In addition, students will be able to discuss and evaluate ethical issues in corporate financing.
They will be capable of describing the tasks inherent to financial management and explaining financial decision criteria on the basis of examples.
Furthermore, they will be able to systematically name and describe common financial market transactions and explain the functions of financial intermediaries. In addition, students will also be able to name the factors that influence the financial markets.
Students will be able to explain the prerequisites of starting a business and describe the financing components commonly used in this phase. In addition, they will also be capable of assessing all of the elements of a credit negotiation, calculating a company´s debt limit and illustrating the structure and application of a credit rating.
Students will have detailed knowledge about the structure and application areas of the financing instruments mainly used in the growth phase. Students will also learn to:
  - analyze sensitivities and risks,
  - examine the advantages of leasing and factoring.
They will be able to explain the functions of the capital markets and foreign trade financing. In addition, they will:
  - be able to compare various capital market instruments and understand how they are issued,
  - be able to mathematically analyze convertible bonds and bonds with warrants,
  - be able to present the terms of payment for documentary credit and documentary collection with regard to the procedure and benefits for the parties involved and explain their integration into foreign trade financing.
- Finally, students will be able to explain the typical development of company crises. In doing so, they will develop solutions to the crises and test their feasibility.

[updated 30.03.2021]
Module content:
1 Theory of managerial finance
        1.1 Terms and overview
        1.2 Stakeholders as a source of financing
        1.3 Return, risk and liquidity
        1.4 Ethical aspects of corporate financing
        1.5 Decisions on capital structure
        1.6 Equity, liabilities and mezzanine capital
2 Functional mechanisms of financial markets
        2.1 Financial transactions
        2.2 Financial intermediaries
        2.3 Factors influencing the markets
        2.4 The price of money: Interest
        2.5 The stock exchange and stock market trading
                2.5.1 Share trading
                2.5.2 Trading in debt securities
        2.6 Government supervision
3 Finance-oriented corporate management
        3.1 Financial management
        3.2 Financing in the life cycle of a company
        3.3. Financial decision criteria
        3.4 Investor relations
4 Launch financing
        4.1 Business idea and business plan
        4.2 Financial challenges in the launch stage
        4.3 Typical sources of financing
        4.4 External financing with loans
5 Growth financing
        5.1 Assessment of investment risks
        5.2 Leasing
        5.3 Working capital management
        5.4 Factoring
        5.5 Aval or guarantee credits
        5.6 Equity for companies that are not capable of issuing shares: Equity interests
6 Financing in the maturity stage
        6.1 Financing via capital markets
                6.1.1 Stocks
                6.1.2 Bonds
                6.1.3 Convertible bonds and bonds with warrants
                6.1.4 Participation certificates
                6.1.5 Promissory note loans
        6.2 Foreign trade financing
                6.2.1 Characteristics of foreign trade
                6.2.2 Documentary collection
                6.2.3 Short-term foreign trade financing
7 Financing in a crisis
        7.1 Types of business crises
        7.2 Financing opportunities
        7.3 Insolvency proceedings

[updated 30.03.2021]
Teaching methods/Media:
Lecture, exercises, case studies

[updated 02.01.2019]
Recommended or required reading:
Berk, J./DeMarzo, P., Grundlagen der Finanzwirtschaft. München: Pearson.
Bieg, H./Kußmaul, H., funding, financing, latest edition, München. Franz Vahlen.
Bieg, H./Kußmaul, H., Investition, latest edition, München: Franz Vahlen.
Bösch, M., Finanzwirtschaft, latest edition, München: Franz Vahlen.
Brealy, R. A./Myers, S. C., Principles of Corporate Finance. Global Ed., latest edition, Boston: McGraw-Hill.
Copeland, T.E./ Weston, J.F./Shastri, K., Finanzierungstheorie und Unternehmenspolitik, latest edition, München: Pearson.
Dortschy, J. W./Jung, K.-H./Köller, R. (2005). Auslandsgeschäfte Banktechnik und Finanzierung. 2. Auflage. Stuttgart: Schäffer-Poeschel.
Grundmann, W. (2013). Leasing und Factoring. Wiesbaden: Springer.
Hillier, D./Ross, S./Westerfield, R./Jaffe, J./Jordan, B., Corporate Finance, European Edition. Boston: McGraw-Hill.
Perridon, L./Steiner, M./Rathgeber, A.W., Finanzwirtschaft der Unternehmung, latest edition, München: Franz Vahlen.
Staroßom, H. (2013). Corporate Finance Teil 2: Finanzierung in den Lebensphasen einer Unternehmung. Wiesbaden: Springer.
Spremann, K. / Gantenbein, P., Finanzmärkte, latest edition, München: UVK/Lucius.
Wöhe, G./Bilstein, J./Ernst, D./Häcker, J., Grundzüge der Unternehmensfinanzierung, latest edition, München: Franz Vahlen.

[updated 30.03.2021]
[Mon Jan 24 23:42:54 CET 2022, CKEY=bif, BKEY=bbw3, CID=BBWL-2020-664, LANGUAGE=en, DATE=24.01.2022]