Finance 390,393

Financial Management Track 390

29:390:300 Financial Econometrics (3) All finance majors must take Financial Econometrics. Economics majors who are also finance majors may use Introduction to Econometrics (21:220:322). Prerequisites: 21:220:231 or 21:640:211 or 01:960:285 and 29:623:340.

29:390:315 Investments (3) 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. CFP requirement. Prerequisite: 29:390:329.

29:390:329 Finance (3) 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: 29:010:204 and (21:220:231 or 21:640:211) and (21:640:119 or 21:640:135 or 21:640:155).

29:390:330 Corporate Finance (3) 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. Prerequisite: 29:390:329.

29:390:331 Ethics in Finance (3) 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.

29:390:340 Financial Statements (3) 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 and 329.

29:390:370 Financial Institutions and Markets (3) 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.

29:390:375 International Financial Management (3) 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.

29:390:386 Futures and Options (3) 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.

29:390:468 Analysis of Fixed Income (3) 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 and 329.

29:390:470 Security Analysis (3) 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.

29:390:476 Real Estate Capital Markets (3) Focuses on debt and equity issues in secondary markets that derive their value from real assets. The course includes an overview of the U.S. mortgage finance system, agency and nonagency 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 case assignments based on real world applications involving basic fixed-income mathematics and cash flow modeling in Excel. Prerequisite 29:390:480.

29:390:480 Real Estate Finance (3) 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 and provides an overview of mortgage structure and mechanics in both residential and commercial markets. The focus then shifts to the evaluation of investment 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 lease information and analyzing risk and return in property markets. Prerequisites: 21:220:439 or 29:382:203 or 29:390:329 or 33:390:300. 2.5 GPA or higher.

29:390:490 Finance Cooperative Education (6) (BA) Three credits will count toward 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 co-op 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.
Writing intensive. Prerequisites: 29:010:204, 29:390:329, 29:620:301, 29:630:301, and junior standing. Requires application to RBS undergraduate dean's office.

29:390:494 Pension Fund Management (3) 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 and 329.

29:390:495 Special Topics in Investment Banking (3) 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 and 329.

29:390:496,497 Finance Internship (BA) On-site finance position in a corporate or not-for-profit organization. Writing Intensive. By arrangement with the Career Development Center and an RBS career management specialist. Prerequisites: 29:010:203, 29:010:204, 29:390:329, 29:620:301, 29:623:220, 29:630:301, and 29:799:301.

29:390:498,499 Independent Research in Finance (BA) Individual research and reading program under the guidance of a member of the department.
Writing intensive. Prerequisites: Requires application to the RBS undergraduate dean's office.

Financial Planning Track 393

29:393:341 Financial Planning and Insurance (3) Covers the basic concepts of financial planning in both short-term cash budgets and the long term in undertaking investments in assets, paying any resulting debts, and savings toward retirement. The insurance portion deals with protecting these assets covering life insurance, health insurance, property, and liability insurance.
CFP requirement. Prerequisites: 29:390:315 and 329.

29:393:466 Estate Planning (3) This course deals with planning one's future estate so that the maximum assets available go where the individual desires. This includes using trusts to that end and minimizing potential estate taxes.
CFP requirement. Prerequisites: 29:390:315 and 329.

29:393:467 Retirement Planning (3) Covers how individuals can save money and looks at corresponding tax implications. The course considers all the various retirement plans that are available to individuals and businesses. It then views how the savings are withdrawn to provide income in retirement.
CFP requirement. Prerequisite: 29:390:329.

29:393:469 Federal Income Tax for Financial Planning (3) This course deals with how individuals and firms pay federal income and employment taxes. It covers what is considered income and what can be deducted from income both as an individual and also as a business owner in determining taxes. 
CFP requirement. Prerequisites: 29:390:315 and 329.

29:393:495 Capstone: Developing a Financial Plan (3) The objective of this course is to provide the student a platform to apply his or her knowledge of the financial planning six step process through a case analysis. The student is expected to have a solid foundation in the process and it is assumed that he or she has already completed or is concurrently enrolled in classes in the six core areas of financial planning. The course goes beyond the technical knowledge of the process to develop the student's ability to integrate, apply, and communicate his or her knowledge to a client. CFP requirement. Prerequisites: 29:390:315 and 329. Corequisites 29:393:341, 466, 467, 469, 495.