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    International Financial Management

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    Kanza Khursheed
    This document contains an assessment cover sheet and feedback form for a written assignment on international financial management. The assignment consisted of two sections: 1) Researching foreign exchange rate predictions and forming hedging strategies for a company's foreign exchange risk. 2) Writing a report on how Microsoft uses international financial markets in its financial management. The grading criteria assess students' work on the exchange rate prediction, hedging strategies, comparison of strategy proceeds, hedging recommendation, discussion of financial market importance, discussion of corporate uses of markets, and critique of how markets help the company's objectives. Feedback is also provided to help students improve.

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    © All Rights Reserved
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    International Financial Management

    Uploaded by

    Kanza Khursheed
    54 views5 pages
    This document contains an assessment cover sheet and feedback form for a written assignment on international financial management. The assignment consisted of two sections: 1) Researching foreign exchange rate predictions and forming hedging strategies for a company's foreign exchange risk. 2) Writing a report on how Microsoft uses international financial markets in its financial management. The grading criteria assess students' work on the exchange rate prediction, hedging strategies, comparison of strategy proceeds, hedging recommendation, discussion of financial market importance, discussion of corporate uses of markets, and critique of how markets help the company's objectives. Feedback is also provided to help students improve.

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    This document contains an assessment cover sheet and feedback form for a written assignment on international financial management. The assignment consisted of two sections: 1) Researching foreign exchange rate predictions and forming hedging strategies for a company's foreign exchange risk. 2) Writing a report on how Microsoft uses international financial markets in its financial management. The grading criteria assess students' work on the exchange rate prediction, hedging strategies, comparison of strategy proceeds, hedging recommendation, discussion of financial market importance, discussion of corporate uses of markets, and critique of how markets help the company's objectives. Feedback is also provided to help students improve.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    54 views5 pages

    International Financial Management

    Uploaded by

    Kanza Khursheed
    This document contains an assessment cover sheet and feedback form for a written assignment on international financial management. The assignment consisted of two sections: 1) Researching foreign exchange rate predictions and forming hedging strategies for a company's foreign exchange risk. 2) Writing a report on how Microsoft uses international financial markets in its financial management. The grading criteria assess students' work on the exchange rate prediction, hedging strategies, comparison of strategy proceeds, hedging recommendation, discussion of financial market importance, discussion of corporate uses of markets, and critique of how markets help the company's objectives. Feedback is also provided to help students improve.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 5

    Final mark awarded: _____

    FACULTY:
    BUSINESS AND SOCIETY

    Assessment Cover Sheet and Feedback Form 2017/18

    Module Code: Module Title: Module Lecturer:


    AF3S25 International Financial Dr Jia Cao
    Management
    Assessment Title and Tasks: Assessment No.
    Written Assignment Two 2 of 2
    No. of pages submitted in total including this page: Word Count of submission
    Completed by student (if applicable): Completed by student
    Date Set: Submission Date: Return Date:
    26/02/2018 16/04/2018 21/05/2018

    Part A: Record of Submission (to be completed by Student)


    Extenuating Circumstances
    If there are any exceptional circumstances that may have affected your ability to
    undertake or submit this assignment, make sure you contact the Advice Centre on your
    campus prior to your submission deadline.

    Fit to sit policy:


    The University operates a fit to sit policy whereby you, in submitting or presenting
    yourself for an assessment, are declaring that you are fit to sit the assessment. You
    cannot subsequently claim that your performance in this assessment was affected by
    extenuating factors.

    Plagiarism and Unfair Practice Declaration:


    By submitting this assessment, you declare that it is your own work and that the sources
    of information and material you have used (including the internet) have been fully
    identified and properly acknowledged as required1. Additionally, the work presented has
    not been submitted for any other assessment. You also understand that the Faculty
    reserves the right to investigate allegations of plagiarism or unfair practice which, if
    proven, could result in a fail in this assessment and may affect your progress.

    Intellectual Property and Retention of Student Work:

    You understand that the University will retain a copy of any assessments submitted
    electronically for evidence and quality assurance purposes; requests for the removal of
    assessments will only be considered if the work contains information that is either
    politically and/or commercially sensitive (as determined by the University) and where
    requests are made by the relevant module leader or dissertation supervisor.

    Details of Submission:
    Note that all work handed in after the submission date and within 5 working days will be
    capped at 40%2. No marks will be awarded if the assessment is submitted after the late
    submission date unless extenuating circumstances are applied for and accepted (Advice

    1
    University Academic Misconduct Regulations
    2
    Information on exclusions to this rule is available from the Advice Centre at each Campus
    Centre to be consulted).
    Student Number(s):
    You are required to acknowledge that
    you have read the above statements
    by writing your student number (s) in
    the box:
    IT IS YOUR RESPONSIBILITY TO KEEP A RECORD OF ALL WORK
    SUBMITTED
    Part B: Marking and Assessment
    (to be completed by Module Lecturer)
    Assessment Task:

    Section One:

    A U.S. company, called AutoUSA, signed a contract with a German company. The
    contract states that AutoUSA will purchase 10,000 units of its product from the German
    company. The sale was priced in Euro at €20,000 per unit, with payment due in three
    months. AutoUSA wishes to hedge its accounts payable. AutoUSA’s weighted average
    cost of capital is 10%.

    1. Please research online for predictions of the exchange rate of US Dollar to Euro
    in three months’ time. Choose a prediction that you agree on the most and
    explain why it’s the best prediction in your opinion (hint: discuss determinants of
    the foreign exchange rate and their impacts on the future movement of the
    foreign exchange rate).

    2. The US Company is risk averse and would like to hedge the foreign exchange
    exposure. Please form three hedging strategies using the following financial
    instruments/markets:
     Currency forwards
     Money market
     Currency options

    3. Please compare the costs and the benefits of different hedging strategies
    (including speculation, i.e., not hedging) and demonstrate the relationship of the
    payoff and profit of different hedging strategies and the future spot exchange rate
    in three months’ time.

    4. Given the prediction of the exchange rate of US Dollar to Euro that you’ve
    chosen, which hedging strategy (including speculation) would you recommend?
    Please explain.

    Spot exchange rate EUR/USD: Bid 1.23 Ask 1.20

    90-day Forward rate (long): EUR/USD 1.28

    90-day Forward rate (Short): EUR/USD 1.25

    90-day Put option for €1M with a strike rate of $1.3/€, premium of $0.06 Per €

    90-day Call option for £1M with a strike rate of $1.3/€, premium of $0.04 Per
    €
    US 3-Month Treasury bill rate: 8% per annum

    Germany 3-Month Treasury bill rate: 6% per annum

    US dollar borrowing rate: 10% per annum

    € borrowing rate: 8% per annum

    Section Two:

    Please do online research and write a report on the uses of international financial
    markets in the financial management of Microsoft Corporation. In your report, you
    should:

     Discuss why international financial markets are important to Microsoft.

     Summarise the types of international financial markets and financial instruments


    that Microsoft. uses in its financial management, including the purposes of their
    use.

     Critique whether the international financial markets help Microsoft. to achieve its
    business vision and objectives.

    Word limit: 3,000

    Please indicate the exact word count at the end of your assignment.

    Format and Presentation


     Font, Font Size and Spacing
    The recommended font is Times New Roman and the recommended font-size is
    12. Choose 1.5 line spacing.
     Tables, Figures and Equations
    Tables and figures shall be numbered consecutively throughout the assignment.
    For example, Table 1, Table 2, Figure 1, Figure 2 etc.
     Equations should be numbered and numbers should be in round brackets at the
    right hand side of the page and be ordered consecutively throughout the
    assignment.
     Citations and References
    Harvard referencing system is required.

    Learning Outcomes to be assessed (as specified in the validated module descriptor


    https://icis.southwales.ac.uk/ ):

    Apply and evaluate financial derivatives for managing risk in an international context.

    Understand roles of international financial markets in financial management of a


    company with international operations

    Grading Criteria:

     Online research on exchange rate prediction (10%)


     Formation of different hedging strategies (20%)
     Comparison of proceeds from different hedging strategies (15%)
     Hedging strategy recommendation (5%)
     Discussion on the importance of international financial markets for the company
    (10%)
     Discussion on uses of international financial markets in corporate financial
    management (20%)
     Critique whether the international financial markets help the company to achieve
    its business vision and objectives (10%)
     Format and presentation (10%)

    Feedback/feed-forward (linked to assessment criteria):


     Areas where you have done well:

     Feedback from this assessment to help you to improve future assessments:

     Other comments

    Mark: Marker’s Signature: Date:

    Work on this module has been marked, double marked/moderated in


    line with USW procedures.

    Provisional mark only: subject to change and/or confirmation by the Assessment Board

    Part C: Reflections on Assessment


    (to be completed by student – optional)
    Use of previous feedback:

    In this assessment, I have taken/took note of the following points in feedback on


    previous work:

    Please indicate which of the following you feel/felt applies/applied to your


    submitted work
     A reasonable attempt. I could have developed some of the
    sections further.
     A good attempt, displaying my understanding and learning, with
    analysis in some parts.
     A very good attempt. The work demonstrates my clear
    understanding of the learning supported by relevant literature and scholarly
    work with good analysis and evaluation.
     An excellent attempt, with clear application of literature and
    scholarly work, demonstrating significant analysis and evaluation.

    What I found most


    difficult about this
    assessment
    The areas where I
    would value/would
    have valued feedback:

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