International Financial

Management
Fall, 2023
 Myths
¨ I am not finance-major, so I only have to
pass.
¨ I will never do finance-related jobs
because I neither like it, nor could master
it.
How to generate Learning?
The Class Format Design
 The Class
¨ Before the class
– Prepare for the chapter
¨ In the class
– Lecture / Presentation
– Problem solving
– News
Group
 Reference
¨ Required
– International Financial Management
– Jeff Madura 14 ed., 2021

¨ Others:
– FM and IFM textbooks
– 鉅亨網，財報狗
 The Required Work
¨ One chapter presentation
¨ Midterm & Final tests
¨ Share your comments
¨ Bonus: End-of chapter cases uploads
– Absolutely no copy-paste
 The Grading Policy

¨ Presence : 20%
– 4 pts deduction for each absence
¨ Participation : 10%
¨ Chapter pres. : 20%
¨ Midterm & Final : 40%
¨ Peer review : 10%
¨ Bonus : 10%
 Chapter pres. evaluation

1. Being logical and clear?

2. Use examples to illustrate the concepts?
3. Represent teamwork?
4. Provide business cases related to the chapter?
5. Questions/comments from the audience
following the presentation?
6. No more than 40 minutes
 Peer Review

¨ 10: Would be Dead without him/her; honored

to be a team-member
¨ 8: Accountable, good member

¨ 5. Average, clear rooms for improvement

¨ 3. No difference with him or her

¨ 1. would be much better without him/her

For Good Grade, Avoid…
 The Goals
¨ Understand…
– Issues in international corporate
finance
– Interactions of finance with other
functions
– Financial news
¨ Have less fear for finance
¨ Appreciate your classmates
¨ Deliver a great presentation
 HW1
(due midnight on 9/17)
¨ How is your life so far at GSIB/NCKU?
– Meet your expectation?
¨ Is anything specific that you want to
improve in the 2nd year?
– How to achieve it?
¨ I want to be …… when I finish the
master’s program.
¨ Others (Photo)
 Main Issues in
Financial Management ?
Mini Tests
 What is working capital?
1. Available funds for business operation
2. Value-creating capital
3. Total assets - total liability
4. Current asset – current liability
 What is net present value?
1. Discounted future cash flow
2. The value of a gift from other firms
3. Book value of equity – liability
4. The value in the future
 How to evaluate a project?
1. Based on strategic fits
2. Based on prior performance of similar
projects
3. Based on net present value
4. Based on brainstorming
 About cost of capital?
1. Investor’s expected rate of return
2. The transaction fees from issuing
securities
3. Debt is often cheaper than equity
4. Dividend payout ot interest payment
 How to estimate a firm’s value?
1. Discounted future cash flow
2. From multiples
3. the market value of equity + debt
4. All of the above
 How is IFM different from FM?
¨ Two major functions of financial managers
– Investment decision
– Financing decision
¨ Revenue and costs from abroad experience
fluctuation due to changes in
– Foreign exchange rate
– Interest rate