Course Details

1. Identify types of finance risks, including fixed, floating, term, revolving credit, guarantees, letters of credit, corporate/entrepreneur risk company/country risk.
2. Describe alternative borrowing structures: the single ship owning company - multinational conglomerates - other limited liability companies - flags of convenience.
3. Outline sources of shipping finance including debt provision syndicated, bilateral, equity, mezzanine/bridging, private placements etc.
4. Assess vessel profitability by looking at cash flow support, methods of employment, pool arrangements and working capital adequacy.
5. Perform credit analysis using quantitative tools (i.e. profit and loss analysis) and qualitative judgement (assessing management scope and competence).
6. Address issues in interest rate management and foreign currency exposure via the use of derivative instruments.
7. Address additional issues such as taxation, depreciation and ethical responsibilities.

Introduction

Multinational Shipping Enterprise and Multinational Financial Management: The Rise of the Multinational Corporation. The Internationalization of Business and Finance. Multinational Financial Management: Theory and Practice.

Measuring Accounting Exposure

Alternative Measures of Foreign Exchange Exposure; Alternative Currency Translation Methods; Statement of Financial Accounting Standards; Transaction Exposure; Accounting Practice and Economic Reality

Measuring and Managing Economic Exposure

Foreign Exchange Risk and Economic Exposure; The Economic Consequences of Exchange Rate Changes; Identifying Economic Exposure; Calculating Economic Exposure; Managing Operating Exposure.

International Financing and International Financial Markets

Corporate Sources and Uses of Funds; National Capital Markets as International Financial Centers; The Euro-markets; Development Banks; Project Finance. The Cost of Capital for Foreign Investments: The Cost of Equity Capital; The Weighted Cost of Capital for Foreign Projects; Discount Rates for Foreign Investments; The Cost of Debt Capital; Establishing a Worldwide Capital Structure

• Shapiro Alan, Multinational Financial Management, Wiley & Sons, 7th Edition
• Harwood Stephenson, Shipping Finance, Euromoney Books, 3rd Edition

• Ross S, R. Westerfield, J. Jaffe, Fundamentals of Corporate Finance, McGraw Hill, Fifth Edition, 2000
• Lumby S., Jones C. , Fundamentals of Investment Appraisal, Int. Thomson Business Press, 1st Edition, 2000
• Brealey R, S Myers , F Allen, Corporate Finance, McGraw Hill, Eighth Edition, 2005