Finance 390

33:390:300 Introduction to Financial Management (3) Introduction to value, valuation of financial instruments, capital budgeting, risk and return, and capital structures. Prerequisites: 33:010:272; 01:198:170; 01:220:102,103; 01:640:135; 01:960:285. Admission to Rutgers Business School.

33:390:320 Financial Markets and Instruments (3) U.S. financial system, corporate flow of funds, financial intermediation, commercial and central banking, monetary theory, financial factors and economic activity, theory of level and structure of interest rates. Prerequisite: 33:390:380.

33:390:375 International Financial Management (3) Introduction to basics of the international monetary system and capital markets, including exchange rate determination, hedging, speculation, and arbitrage through foreign currency forwards, futures, options, and swaps. International equity markets, bond markets, and benefits of international diversification. International considerations in corporate financial decision, political risk, and international capital budgeting. Prerequisite: 33:390:300.

33:390:380 Investment Analysis (3) Overview of security analysis and financial management. Theory of investment, nature of financial markets, valuation of fixed income securities, term and risk structure of interest rates, strategies of bond management, evaluation of common stock, and efficient market hypotheses. Written and oral presentations required. Prerequisite: 33:390:300.

33:390:400 Corporate Finance (3) Capital budgeting, capital structure, dividend policy, mergers and acquisitions, and some aspects of international finance. Prerequisite: 33:390:300.

33:390:410 Asset Pricing and Portfolio Analysis (3) Modern theories of portfolio choice, capital asset pricing, and portfolio management. Risk and return nature of securities and portfolios, mean variance portfolio selection, index and capital asset models, arbitrage pricing theory, and other topics. Prerequisite: 33:390:380.

33:390:420 Futures and Options (3) Analysis of different kinds of futures and options. Use of commodity, interest rate stock index, and currency futures for hedgers and speculators. Stock options, investment strategies, arbitrage restriction on value and evaluation models, and the use of options and futures contracts in portfolio management. Prerequisite: 33:390:380.

33:390:430 Working Capital Management (3) Introduction to liquidity and cash management, including the examination of inventory, cash, accounts receivable, and other treasury-related, short-term, financial management issues. Prerequisite: 33:390:300.

33:390:435 Real Estate Finance and Mortgage-Backed Securities (3) Examination of primary markets, secondary markets, and derivative products. Topics include origination process, income-producing mortgage loans, agency purchases, security pricing, and securitization of single-family and commercial loans. Prerequisite: 33:390:300.

33:390:440 Advanced Corporate Finance (3) Complex corporate securities, such as callable and convertible debt or adjustable rate preferred stock, option theory, corporate insurance, and hedging. Prerequisite: 33:390:400.

33:390:450 Financial Analysis, Planning, and Forecasting (3) Overview of short-term and long-term financial analysis, planning, and forecasting; credit, cash, marketable securities, and inventory management. Applications of regression, linear programming, and computer techniques in alternative financial planning and forecasting analyses. Prerequisite: 33:390:300.

33:390:460 Insurance Finance and Corporate Risk Management (3) Examination of issues related to insurance finance and corporate risk management; issues faced by the risk manager; applications of financial analysis methodology; estimation and mitigation of risk by insurance, hedging, and diversification. Prerequisite: 33:390:300.

33:390:465 Pension Fund Investment and Management (3) Application of financial theory and methods to pension fund investment and management. Prerequisite: 33:390:300.

33:390:480 Research in Finance (BA) Individual research and reading program under the guidance of a member of the department. Prerequisite: Permission of department. Open only to finance majors.