international finance

– International Finance Assessment Brief

100% individual coursework, comprising of 3 related parts.

Part 1: Discussion only, 2,500 words (30%) done Part 2: Discussion and calculations 2,000 words (35%) we have to do

Introduction:

This module is 100% assessed by coursework which consists of three linked pieces of work. The coursework is an applied project which should be worked on and researched individually. Overall, the intention is that you apply various aspects of the module to a proposed project, in a country of your choosing.

The assessment will cover;; where the long and short term finance is going to come from and how it will be structured; calculating a discount rate and explaining the process; and undertaking a capital investment appraisal including tax, deciding which reporting currency to use and which exchange rate. More detail regarding assessment criteria and marking rubrics will be provided for each of the three parts.

List A:

Learning outcomes being assessed:

Assessment and Submission:

Assessment 1 Date due: Monday 26th November 30% of the overall mark

Part one of the assessment consists of the following components:

1a. Assess which theories of why companies invest in FDI are useful in explaining why your MNE is investing in your chosen country and project. (1,000 words).

1b. Evaluate and summarise the political and country risks of your project. (1,000 words)

1c. Evaluate the operating exposure implications of the proposed project from the MNEs perspective. (500 words)

Total word limit = 2,500 words.

Assessment 2 Date due: Monday 4th February 35% of the overall mark

Part two of the assessment consists of an evaluation of the financing requirements of setting up the project.

Specifically the following questions should be addressed within this part of the assessment:

· What proportion of the capital structure will come from debt or equity? Why?

· Will capital be raised locally or from head office? Why?

(1000 words for the two capital structure questions above)

· What are the working capital implications of the project? (500 words)

· What is an appropriate cost of capital for the project (this will provide your discount rate for part three of the assessment)?

· How was the cost of capital calculated? Explain your calculations. (500 words)

Part two of the assessment will therefore involve discussion and numerical analysis. You should decide upon the capital structure of your project in terms of proportions (%) and be able to evaluate and explain your decision. You should present clear calculations for your cost of capital along with an explanation and evaluation of your approach.

Total word limit = 2000 words.

Refere to document (international finance 2 for more information and details )