Finance 390,393

29:390:203 Introduction to Finance (3) This is an introductory course for business minors and no business majors are allowed to take this course.

Financial Management and Capital 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 Derivatives (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.

29:390:440 Treasury Management (3) 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.

29:390:450 Advanced Corporate Finance (3) The course provides students with practical experience in solving finance issues typically encountered in investment banking and the CFO's office through intense lecture, case study, and Excel-based lessons. Students learn to think critically, logically, and systematically. Specific concepts covered include company valuation (discounting cash flows, comparable companies, precedent transactions, and venture funding), raising capital, prioritizing cash over profit, leasing, financial planning and analysis (FP&A), and using finance in strategic decision-making. Prerequisites: 29:390:329 and 29:390:330.

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.

29:390:475 Finance of Fashion and Other Creative Pursuits (3) The fashion industry has changed considerably in recent years. Terms like "fast fashion" have changed the climate, and investment in social media and international manufacturing has risen sharply. More importantly however, young or emerging designers and "creatives" gain an edge by not remaining in an isolated bubble. To become key members of multidisciplinary teams, familiarity with core financial concepts is essential and necessary in order to achieve a common level of understanding and communication in relation to the team's shared objectives and the firm's overall corporate drivers. The course serves to strengthen the student's grasp of financial management, investments, capital markets, and international finance and to strengthen competence in financial decision-making. This is an intermediate/advanced finance course contextualized to fashion and luxury industries. We study how to implement advanced knowledge in various areas of finance to problems specific to fashion companies, startups, and conglomerates. We explore advanced techniques in the areas of investments, corporate finance, financial markets and instruments, hedging, and international finance. This course is not a survey course; rather it covers in-depth intermediate to advanced topics. 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.

29:390:488 Special Topics: Digital Assets, Blockchain, and the Future of Finance (3) This course is aimed for a nontechnical audience that is interested in learning how Distributed Ledger Technology (DLT) and Blockchain, as its subset, has been implemented in the financial industry; how it is already changing the future of financial (and economic) services and products, including payments; and how it will impact our lives and the global economy, as a whole. Regulators, globally, such as the SEC, OCC, U.S. Treasury Department, Fed, IMF, and ECB, have been recognizing the benefits that DLT and Blockchain technology can bring to financial and economic activities. In addition to experimenting with a Central Bank Digital Currency (CBDC), they have been supporting compliant Decentralized Finance (DeFi) products, which have the appropriate regulatory support and compliance built in. Prerequisite: 29:390:329.

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.

29:390:493 Special Topics: Mergers and Acquisitions (3) This course addresses the mergers and acquisitions (M&As) process and the environmental complexities affecting deal making; it surveys the main theories and forms of M&As; discusses the legal framework and corporate governance, and the main accounting and taxation principles for M&As; addresses and applies valuation methods and practices; examines various takeovers and restructuring strategies, including hostile takeovers and defenses, leverage buyouts, and international mergers. This course employs case studies that provide students with a real-world framework for the application of the theoretical principles and analytical methods for analysis and solution of issues relating to M&As. Students are required to address the case studies in groups of up to four and gain experience in working in teams and making presentations (as is common in corporate America). Prerequisite: 29:390:329.

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. Prerequisite: 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 saving 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 Taxation Issues Affecting 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.