FinanceAnand S. Desai, Head
Professor Graham; Associate Professors Desai, Higgins, and Tavakkol; Assistant Professors Kong, Peters, and Xue; Instructors Hendrix, Kruse, and Sheppard. Emeriti Professors Chalmers, Hollinger, and Richards.
The finance curriculum allows the student to specialize in financial management, financial controllership, or financial services.
The financial management option provides the student with the analytical skills for the analysis, evaluation, and reporting of financial information. These activities are ultimately used in managerial decision making by businesses and regulatory agencies. This option is designed for graduates who wish to pursue a career as a financial manager or analyst.
The financial controllership option supplements the analytical focus of the financial management track with additional accounting skills. This option is designed for those who intend to pursue careers related to the controllership function of a firm.
The financial services option provides a broad knowledge of financial markets, institutions, and services and prepares the student for providing financial products and services to the consumer. Graduates in this option typically seek careers in banking, consumer lending, brokerage services, financial planning, portfolio management, and real estate.
Finance majors are expected to develop a broad understanding of business management, accounting, economic theory, management information systems, and quantitative techniques. In addition, effective written and oral communication skills and the ability to work in groups are essential for a successful career in finance. The curriculum of the Department of Finance is designed to help the student develop these necessary skills through active learning methods.
Requirements for major
FINAN 450. Principles of Finance. (3) I, II, S. Study of the basic principles of finance, including discounted cash flow analysis, risk-return tradeoff, asset pricing models, andfinancial and real asset valuation. Applications of these concepts to the firm's investment and financing decisions and performance analysis will be discussed. Pr.: ECON 120, STAT 350, and ACCTG 231.
FINAN 453. Careers in Finance. (1) I, II. An overview of the various types of career opportunities available in the field of finance, and how to prepare for them. Should be taken prior to first semester of senior year. Pr.: Junior standing.
FINAN 460. Insurance. (3) I. A study of life, property, casualty, and health insurance from the purchaser's point of view with additional emphasis on the operation and contribution of the insurance industry. Pr.: ECON 110.
FINAN 498. Problems in Finance. (Var.) I, II, S. Internship program and selected projects appropriate to the student's program of study. Pr.: Consent of department head based on background courses appropriate to the project selected.
FINAN 510. Debt Securities and Markets. (3) I, II. An analysis of the features, valuation, and use of debt securities by both businesses and governments, from the investor's point of view. The determinants of interest rates and the impact of inflation on asset returns. Applications to the management of bond portfolios and the use of derivatives of debt securities will be discussed. Pr.: FINAN 450. May be taken conc. with FINAN 520.
FINAN 520. Equity Securities and Markets. (3) I, II. An analysis of equity securities and markets from the investor's point of view. Topics covered include the mechanics of investing in equity securities, risk-return tradeoff, asset pricing models, market efficiency, valuation of equity securities, portfolio performance measurement and an introduction to equity derivatives. Pr.: FINAN 450. May be taken conc. with FINAN 510.
FINAN 531. Commercial Banking. (3) II. An application of financial management concepts to the liquidity management, investment portfolio analysis, capital budgeting, and capital structure decision-making process required by a commercial bank to perform effectively its financial intermediation role within the financial system's institutional, regulatory, and competitive environment. Pr.: FINAN 510 and 520.
FINAN 552. Real Estate. (3) II. Principles and practices including legal, economic, and social implications from the viewpoint of the real estate practitioner, investor, and society. Pr.: Junior standing.
FINAN 561. Financing Emerging Businesses. (3) II. A study of the business environment. Methods of organizing and financing emerging businesses, investment, valuation, and financial planning from the perspective of an owner-manager. Pr. FINAN 510 and 520.
FINAN 562. Short-Term Financial Management. (3) I. Application of financial concepts to the firm's short-term investment and financing decisions. Topics include cash collection, cash concentration, cash disbursement, banking relationships, receivables and payables management, hedging, risk management, and international short-term finance. Pr.: FINAN 510 and 520.
FINAN 643. International Financial Management. (3) I. The international (cross-currency) aspects of financial management. Topics include currency markets and exchange rate determination, parity conditions, foreign exchange exposure and management, and valuation of international projects. Pr.: FINAN 510 and 520 or FINAN 815.
FINAN 653. Security and Portfolio Analysis. (3), I, II. The analysis and valuation of securities and the management of investment portfolios. Students analyze the composition of, make buy/sell recommendations for, and evaluate the performance of an actual portfolio. Pr.: FINAN 510 and 520.
FINAN 654. Derivative Securities and Markets. (3) II. Structure and operation of markets for futures, swaps, options, synthetic options, and futures on options. Valuation of futures contracts and options. Applications of derivatives to hedging and speculating strategies. Pr.: FINAN 510 and 520.
FINAN 661. Professional Financial Planning. (3) I, II. A study of the principles and practices of professional financial planning using an integrated planning model. Topics include the planning environment, concepts, tax management, asset acquisition and management, credit management, risk management, investments, retirement planning, and estate planning. Contemporary applications, professional opportunities, and legal/ethical standards are emphasized. Pr.: FINAN 510 and 520.
FINAN 665. Intermediate Finance. (4) I, II. An in-depth study of a firm's investment and financing decisions, firm performance measurement, and financial planning for a business enterprise. Topics include financial statement analysis and forecasting, capital budgeting, risk considerations in capital budgeting, cost of capital, capital structure theory and practice, distribution policy, leasing, and mergers and acquisitions. Pr.: FINAN 510 and 520. (Not available for credit to students taking FINAN 815 or 860.)
FINAN 675. Cases in Finance. (3) I, II. A capstone case course in finance. Utilizes the case method of instruction to provide students with the opportunity to integrate financial concepts and theories with the objective of solving financial problems in a real world setting. Analytical and written and oral communication skills are developed using cases in such topics as financial analysis and forecasting, investment and financing decisions, distribution policies, security issuance, and international aspects of finance. Pr.: FINAN 665.