Finance Major

Financial concepts and methods of analysis. The time value of money and its relation to such concepts as net present value and internal rate of return; principles of valuation and financial markets. The use of capital budgeting, management of cash flow, and working capital management.

Prerequisites: 21:220:102, 21:220:231, 21:355:101

All finance majors must take Financial Econometrics. Economics majors who are also finance majors may use Introduction to Econometrics (21:220:322).

Introduction and analysis of the dimensions of risk and return. Portfolio theory and its application in the management and performance evaluation of investment portfolios. Equilibrium theories of risk and return-capital asset pricing model and the arbitrage pricing model. Interest rate theory, yield curve, linkage between short-term and long-term rates, credit risk, and interest rate risk. Analysis of individual securities: money market securities, bonds and mortgage-backed securities, common and preferred stocks, and derivatives-futures and options.

Prerequisite: 29:390:329

Issues relating to the financing of capital investments. How financial risk affects the cost of capital and helps determine the capital structure of the corporation. Interactions between investment and financing decisions. The uses of various securities to finance an investment, as well as methods such as lease financing.

Prerequisites: 29:390:329, 21:355:102, 21:220:101

Detailed overview of the theory and institutional features of the U.S. financial system; comprehensive review of the U.S. financial markets.

Prerequisite: 29:320:329

This course addresses the ethical dilemmas and conflicts of interest faced in banking, corporate finance, and financial investing. Course materials and discussions address important issues such as fiduciary duties, insider trading, financial reporting, derivative trading, customer deception, churning, bankruptcy, tax evasion, bank lending practices, and the influence of compensation schemes. Throughout the course, frameworks and decision-making tools will be introduced to guide in-class analyses and help individuals manage ethical dilemmas in their own workplaces.

Prerequisite: 29:390:329

Techniques for examining and interpreting financial statements to support business and investment decisions. The viewpoints of short-term creditors, long-term lenders, equity investors, and internal management used as the focus of the analysis. Topics include ratio analysis, cash flow forecasting, and security valuation.

Prerequisites: 29:390:315, 29:390:329

Provides a comprehensive review of the international financial markets. Covers a survey of the organization of the international financial markets and institutions, such as the international banking system, equity, and bond markets. The course provides the theoretical underpinnings as to how the structure of the international capital markets impacts the price of financial securities and exchange rates.

Prerequisite: 29:390:329

Introduction to derivatives-futures and options contracts on commodities, interest rates, and equities. Historical development, institutional features, and economic functions of the futures and options markets. Pricing of the contracts. Understanding the role of expectations, arbitrage, and the relationship to their cash market counterparts. Analyzing risk exposures and exploring the hedging and speculative potential of the markets. Implementing and evaluating hedges in commodity, interest rate, and equity markets.

Prerequisite: 29:390:329

This elective course introduces how a Corporate Treasurer manages the finances of a business along with supporting the supply chain component of a business through various supply chain finance concepts. The course will take an in-depth look at firm’s working capital, domestic and international cash management, financial risk, receivables/payables and inventory, debt and investment, capital structure, cash forecasting, technology in the treasury area, and ethical issues. There will be case studies reviewed in the class that discuss the use of various treasury techniques. The various subjects taught in this class will be taught by a Treasury Practitioner who has extensive experience in all the various topics. For all the topics discussed the students will be provided actual business experiences that provide a clear understanding of the material.

Prerequisite: 29:390:329 (Finance)

Complex corporate securities, such as callable and convertible debt or adjustable rate preferred stock, option theory, corporate insurance, and hedging.

Explores the investment characteristics, pricing, and risk/reward potential of fixed-income securities. The securities covered include bonds--with and without embedded options; mortgages and mortgage-backed securities together with their derivatives such as collateralized mortgage obligations (CMOs), income-only (IOs) and principal-only (POs) strips; interest rate swaps; and interest rate futures and option contracts. In addition, this course will explore the strategies for investing in portfolios of fixed-income securities.

Prerequisites: 29:390:315, 29:390:329

This course equips students with the skills and knowledge needed to analyze securities based on the foundations of value investing, which were first taught by Benjamin Graham and David Dodd, and later proven by Warren Buffett's enormous success.

Prerequisite: 29:390:329

Real Estate Capital Markets focuses on debt and equity issues in secondary markets that derive their value from real assets. The course includes an overview of the US mortgage finance system, agency and non-agency residential mortgage-backed securities, structured mortgage products such as collateralized mortgage obligations, collateralized debt obligations and stripped securities, commercial mortgage-backed securities, Real Estate Investment Trusts and limited partnerships. Coursework involves basic fixed-income mathematics and cash flow modeling in Excel.

Prerequisites: 29:390:480

This course provides the background and tools necessary to analyze value, risk, and return in commercial property markets. The initial emphasis of the course is on mortgage finance and applications; providing an overview of mortgage structure and mechanics in both residential and commercial markets. The focus then shifts to the evaluation of investment opportunities in property markets from the perspective of an institutional investor. Students will use lease and market information to develop pro forma cash flow projections for a given property and evaluate the associated risks and returns. Extensions include tax issues, the relationship between value, returns and leverage, partnership agreements and/or real options. The course also provides extensive training and certification in ARGUS, a real estate industry-standard software package used for entering and compiling lease information.

Prerequisites: 29:390:329 or 21:220:439

Three credits will count towards finance elective credit, and 3 credits will count toward free elective credit. Internship program for six months (January to June, or June to December) at a participating corporation. Must complete the Coop Form and consult with an RBS Career Management Specialist to receive credit. Evaluations by corporate supervisor in the participating organization and an RBS Career Management Specialist determine final grade in the course.

Prerequisites: 29:010:204, 29:390:329, 29:620:300, 29:630:301, and junior standing

The course describes and analyzes the different retirement vehicles provided by business for employees. In particular, the course describes and analyzes in details the major differences in defined benefit and defined contribution plans, including the tax aspects.  Topics also include paths for personal retirements. 

Prerequisites: 29:390:315, 29:390:329

Examines the role of investment banker as a financial intermediary, in the areas of financing, issuance of securities, and merger and acquisitions. The course will also cover the art of negotiations and new financial developments. The class is separated into groups for casework. The main purpose of the cases is for the student to learn how to apply theoretical financial concepts to real problems corporations have faced.

Prerequisites: 29:390:315, 29:390:329

On-site finance position in a corporate or not-for-profit organization.  By arrangement with the Career Development Center and a RBS Career Management Specialist.

Prerequisites: 29:010:204, 29:390:329, 29:620:300, 29:630:301, and junior standing

Individual research and reading program under the guidance of a member of the department. Prerequisites: Permission of instructor and department chair or dean's office, and senior status.