Course Descriptions: Finance
- F 509 Advanced Capital Budgeting (1.5 cr.) P: F 523
- This course develops a working knowledge of capital budgeting. The beginning of the course focuses on the application of traditional capital budgeting criteria, the determination of cash flows for capital budgeting purposes, and the determination of the appropriate cost of capital. Next, alternative methodologies/concepts such as Adjusted Present Value (APV), Economic Value Added (EVA), and valuing investment opportunities as Real Options are examined. Case studies are utilized to emphasize how these techniques can be applied to improve the capital allocation process.
- F 517 Venture Capital and Entrepreneurial Finance (1.5 cr.) P: F 523
- This course will examine venture capital in financing entrepreneurial growth companies, how venture capital is raised, invested, and then harvested for reinvestment; how professional venture capitalists analyze and structure potential investments; how and when portfolio companies should execute an exit.
- F 520 Asset Valuation and Strategy (1.5 cr.) P: F 523
- The course begins with an introduction to the primary and secondary markets with an emphasis on the equity markets. Basic theories for valuing equity and derivative securities are presented. Covered in the equity arena are the Capital Asset Pricing Model, Arbitrage Pricing Theory, and empirical tests of these models. Basic options, forwards, and futures are applied as risk management techniques in the equity and currency markets. Required course for finance majors.
- F 523 Financial Management (3 cr.)
- Provides a working knowledge of the tools and analytical conventions used in the practice of corporate finance; establishes an understanding of the basic elements of financial theory to be used in application of analytical reasoning to business problems; and explores the interrelationship among corporate policies and decisions. Course work will include problem sets, study group preparation of executive summary memos and critiques, and use of PC spreadsheets to develop a planning model for a case focusing on funds requirement. For MBA students enrolled in Module 1B.
- F 525 Corporate Financial Risk Management (1.5 cr.) P: F 520
- This course provides an introduction to risk management strategies. We will focus on two key questions: First, why is risk management important? Second, how can risk management strategies be implemented? The course will make extensive use of derivatives as risk management tools, but no technical knowledge of derivatives is required. Students will be introduced to commercial software such as JP Morgan's Riskmetrics and Creditmetrics. Bus F 526 is recommended, but not required.
- F 526 Derivative Securities (1.5 cr.) P: F 520
- This course provides an introduction to derivative securities. We will focus on understanding the basic types of derivatives such as futures contracts, swaps, and options. We will make extensive use of the Binomial and Black-Scholes models for pricing options. No prior knowledge of derivatives is required and we will keep the mathematics to the essentials.
- F 528 Fixed Income Investments (1.5 cr.) P: F 523
- Explores the broad class of fixed income securities, the determinants of risk and pricing, theories of the term structure, and the management of portfolios of fixed income securities. Theoretical material is developed in the context of the market for treasury securities. The later part of the course is on institutional foundations of corporate bond, municipal bond, and mortgage-backed securities markets, as well as how the concepts are adapted to the valuation and management of these more complex securities.
- F 529 Equity Markets (1.5 cr.) P: F 523
- The conceptual and analytical framework for investing in equity securities are presented in this course. Coverage includes an overview of the security markets, equity valuation, investment strategies, and portfolio management for individuals and institutions. International equity investing is discussed in global portfolio context. Numerous examples are used to illustrate the practical application of valuation models and strategies.
- F 540 The Firm in the Capital Market (1.5 cr.) P: F 523
- An introduction to the fixed income markets and the derivative securities used to hedge interest rate risk is presented. The price/yield relationship, term structure of interest rates, and interest rate risk measurement are emphasized. Forwards, futures, options and swaps are presented as risk management tools. Required course for finance majors.
- F 548 Corporate Governance and Restructuring (1.5 cr.) P: F 523
- This course is designed to promote greater understanding of mergers and acquisitions, restructurings, and corporate governance activities. This includes exploring the theory and evidence regarding the motives for M&A/restructuring transactions, the sources of value-added, and managerial incentives to engage in or resist these activities. Participants will learn how to apply discounted cash flow techniques for valuation purposes. Case studies are utilized to incorporate financial theory and valuation techniques in real-world situations
- F 570 International Financial Markets (1.5 cr.) P: F 523
- This course examines the international financial markets in which firms and investors operate and discusses how to assess the opportunities and risks of those markets. Topics to be discussed include balance of payments, international arbitrage relationships, exchange rate determination, currency crises, and international asset diversification
- F 571 International Corporate Finance (1.5 cr.) P: F 523, F 570
- This course examines how firms and investors manage their operations or investments in an international environment. Topics to be discussed include foreign exchange risk management, financing the global firm, foreign investment decisions, and multinational capital budgeting.
- F 590 Independent Study in Finance (cr. arr.)
- For advanced M.B.A. students engaged in special study projects. Course admission and project supervision is arranged through the M.B.A. Office and the student's faculty advisor.
