An introductory financial perspective to (1) why a publicly- traded firm exists and (2) what is the optimal approach for managing a publicly-traded firm. Comparisons are made between how privately-held firms and public sector institutions are managed.
This one-hour module builds on the principles of optimal project selection introduced in FIN 5161. Usage of the Capital Asset Pricing Model for determining project rates is demonstrated. Both internal financing decisions (dividend decisions) and external financing decisions (debt vs. equity) are introduced.
The concluding module on strategic Corporate Financial Management, exploring optimal strategies for financing the firm's projects. The theoretical linkage between the modern option pricing model, efficient capital markets, agency theory, and the theory of the firm is developed.
This course gives students valuable hands-on experience researching, analyzing, and managing a portfolio of small-cap stocks. The level of security research and valuation analysis mirrors that experienced working in industry. Students are required to produce stock research reports and present their recommendations to the other analysts managing the investment fund.
This course is required for MBA and MSIS students who do not have an undergraduate degree in business from an AACSB-accredited institution. It provides students with a foundation in finance which is expected of all business graduate students.
The central focus of the course is to gain an understanding of the financing of entrepreneurial ventures, including ways investors identify and commit the necessary resources to create and finance ventures. To accomplish these objectives the course addresses specific skills, concepts, and know-how relevant for attracting private equity financing to an entrepreneurial venture.
A study of how firms create value for stockholders through long-term financial decisions, principally asset acquisition/divestiture decisions and debt/equity funding decisions. Specific topics include economic profit and cash flow, the time value of money, risk and return, options, agency, efficient markets, capital budgeting decision criteria, capital structure theory, and dividend policy theory.
In this course we construct simulation models for use in evaluating uncertain project outcomes; utilize the method of comparables and discounted cash flow to estimate the intrinsic worth of a firm; evaluate the real option components of risky investment projects; evaluate firm performance in terms of shareholder value created; analyze the shareholder wealth consequences of corporate restructuring activities including mergers, leveraged buyouts, leveraged recapitalizations and initial public offerings; and discuss the ethical implications of corporate restructuring activities.
FIN 5365 or equivalent coursework/experience is expected before applying. This course gives students valuable hands-on experience researching, analyzing, and managing a portfolio of small capitalization (small-cap) stocks by managing the fund. The level of security research and valuation analysis mirrors the experience working in the industry.
Examines the intriguing process of financing the pursuit of opportunity and growth without regard to assets controlled currently. The major focus is on start-up or acquisition and the initial stages of growth. There is an emphasis on high-growth firms, and the central objective is to gain an understanding of how entrepreneurs obtain and use financial resources. The course also examines how value is created.
Valuation concepts and techniques necessary to appraise real estate. Topics include theoretical valuation models, regression-based models, the cost approach, market feasibility studies, and urban-growth models. Case studies require application of statistical techniques.
A study of international financial management. Principal topics include issues in international business and finance; basic concepts, types, and issues of international financial markets; the mechanics of foreign exchange (FX) dealings and the effect of exchange rate fluctuations on corporate operations; currency derivatives and the implementation of FX risk hedging techniques; and short- and long-term financing decisions and risk management. With a focus on the enhancement of analytical skills based on the tools and theory of international finance, this course will promote critical thinking skills of the student.
The rationale, design, implementation, and evaluation of employee benefit plans. Emphasis on employer-sponsored plans to provide benefits for death, medical and dental expenses, disability, and retirement; insurance and self-insurance funding arrangements; the taxation of employee benefits; legal requirements; integration with public programs and individually purchased insurance; labor union influences; and contemporary problems and issues. Consideration of new types of employee benefits, as well as such traditional benefits as paid vacations, sick leave, educational assistance, and other aspects of total compensation. Case studies are used to illustrate the process of balancing employer objectives, employee needs and desires and cost considerations.
See ECO 5333 for course information.
A study of business risk management, recognizing the relationship between risk management and the overall goals of the firm, through an integrated approach that combines the concepts and tools from both the insurance and the financial risk management disciplines. Emphasis is placed on the identification, evaluation, and management of corporate risks, defined broadly to include both operating and financial risks. Specific topics include traditional hedging strategies as well as techniques such as leveraging, post-loss financing, contingent financing, and diversification.
A study of how firms create value for stockholders through long-term financial decisions, principally asset acquisition/divestiture decisions and debt/equity funding decisions. Specific topics include economic profit and cash flow, the time value of money, risk and return, options, agency costs, efficient markets, capital budgeting decision criteria, capital structure theory, and dividend policy theory.
This course covers the short-term financial management functions and responsibilities typical of a Corporate Treasurer. Areas covered include cash and liquidity positioning, credit extension and collections, payables management, bank relations, short-term investing and borrowing, and management of interest rate and foreign exchange risks, all with a focus on current business practices. Lectures and readings are reinforced with individual and group projects and cases. The class will also provide partial preparation for students wishing to take the Certified Treasury Professional (CTP) exam.
The merger and acquisition phenomenon, both domestic and international. The course focuses on the economic rationale for a merger from the perspective of the various "stakeholders," particularly from the view of shareholders. Significant attention is given to valuing a merger prospect as well as to determining how the "deal" is structured financially. Lectures are supplemented with group projects and cases.
Theory and practice of portfolio investment with emphasis on stocks, bonds, and portfolio management. Major topics include portfolio theory, performance evaluation, market efficiency, equity and bond management strategies, the use of derivative securities in portfolio management, and mutual funds. Current readings and cases supplement the text.
Personal financial planning, incorporating material from investments, insurance, retirement benefits, taxation, and estate planning into a coordinated financial planning process. Case analysis is used to demonstrate the complexities involved in solving financial planning situations. Formulation of financial plans and counseling techniques are also examined.
U.S. money and capital markets, including international money markets, financial institutions, fixed-income analysis and management, bank funds management, options, futures, options on futures, investment banking, and mergers and acquisitions. Special emphasis is given to the management of interest rate risk in financial institutions.
A study of the major issues involved in managing financial institutions. Principal topics include the role of financial institutions as intermediaries between providers and users of investment funds; financial performance of such institutions; loan management, commercial credit analysis, and loan pricing; liquidity and reserve management; investment management; capital structure, liability management, and the cost of funds; and asset/liability management. The regulatory environment for financial institutions is also examined. Lectures and readings are supplemented with group projects and presentations.
This practicum gives students valuable hands-on experience in securities research, valuation of risky assets, and asset allocation by managing the Philip M. Dorr and Alumni Endowed Investment Fund. Through readings and student-prepared research reports students develop skills in evaluating economic, industry, and firm data; integrating such data into securities analysis; and communicating their research results to others.
An introductory course in the theory and principles of finance, which include planning and controlling functions (time value of money, pro forma budgeting, ratio analysis), balance sheet management (working capital budgeting, debt & equity financing), and cost management (cost classification allocation, break even & variance analysis), among other topics. This is an applied course that focuses less on the theoretical (textbook) concepts and more on practical tools that will be useful in the student's professional endeavors.
This course may be taken for one to six semester hours of credit.
This course may be taken for one to six semester hours of credit.