Finance Course Descriptions

FNCE 5101 – Financial Management

All major business decisions have financial implications, and therefore, the financial manager’s contribution to directing the operations of the firm has become increasingly critical in the last decade. This course provides an overview of techniques for effectively studying financial decisions and their impact on the company. The course covers the basic concepts and tools necessary to understand the financial decision-making process. The fundamental issues of timing and uncertainty are integrated into the problem of asset valuation. Financial analysis models for determining appropriate sources of capital and effective use of long term and short term assets are discussed. Prerequisites: ACCT 5121 & OPIM 5103

FNCE 5151 – Introduction to Economic Markets

Provides a foundation in the economics of markets, with particular application to financial markets and the role of information. Specific topics include the following: (1) the basic principles of supply, demand, profit maximization, price determination, international trade, and exchange rates; (2) the basic structure of modern, global financial markets, as an application of the basic economic principles; (3) the use of information and information technology in financial markets, including use of the internet, Bloomberg, Dow Jones and other computerized sources of information; and (4) a review of the “efficient market hypothesis.

FNCE 5202 – Investment & Security Analysis

A rigorous foundation in risk/return analysis, asset valuation, the use of derivatives, and financial engineering techniques in risk management and overall portfolio management. Information technology is applied, including computerized financial modeling and asset management software. Prerequisite: FNCE 5101

FNCE 5205 – Global Financial Management

An exploration of global finance topics such as 1) international trade, 2) balance of payments, 3) exchange rate determination, 4) currency exposure, and 5) the cost of capital in global financial markets. Information technology is applied. Prerequisite: FNCE 5101

FNCE 5209 – Corporate Finance

A market-oriented approach to corporate finance issues, especially capital structure and dividend policy. Modern concepts of agency theory and asymmetric information are integrated. Prerequisite: FNCE 5101

FNCE 5504 – Options and Futures

Analysis and valuation of speculative securities including options and futures with emphasis on their use of hedging and speculative motives. Major valuation models are discussed and applications of contingent claim valuation framework to corporate finance problems are also explored. Prerequisite: FNCE 5101

FNCE 5512 – Fixed Income Instruments

This course examines contemporary portfolio management of fixed income institutional investors, issuers, and broker-dealers. It assesses current practice and presents a theoretical framework for anticipating change. Coverage includes pricing, assessment of return and risk, and the development of overall strategies, for these markets:  government, corporate, municipal, and international bonds; mortgage-related and other asset-backed securities; and derivative securities including futures, options, swaps, and other interest rate contracts. Prerequisite: FNCE 5101

FNCE 5532 – Real Estate Investment & Portfolio Management

This course provides an overview of real estate investment decision-making. Topics include: risk-return analysis of alternative types of real estate investments; leases, operating costs, and tax consequences; valuation techniques, including discounted cash flow and option pricing; real estate portfolio management; and alternative forms of equity securitization such as real estate investment trusts. Prerequisite: FNCE 5101

FNCE 5533 – Real Estate Capital Market

This course covers the structure and operation of the mortgage market. Topics include the identification, measurement and management of risk from the perspective of borrowers, lenders, and investors. The course stresses the integration of the real estate debt markets with the global capital market, and considers the role and impact of mortgage-backed securities for residential and commercial real estate lending. Prerequisite: FNCE 5101

FNCE 5534 – The Internet and Information Systems Applied to Real Estate

Specialized information technology is now available for all segments of the real estate industry. For example, investment firms are particularly interested in information technology that helps them monitor, understand, and manage risks associated with mortgage-backed securities. Database management systems and geographic information systems (GIS) give the decision-maker unprecedented power to manage data and analyze risks. The Internet opens up vast new sources of timely information. This course stresses the use of GIS and of the Internet. Students will gain hands-on experience with these tools through projects that are organized around business problems. Prerequisite: FNCE 5101

FNCE 5611 – Financial Modeling

This course is a “hands-on” use of computerized decision aids to analyze a variety of financial problems. Applications will be drawn from corporate financial planning, modern portfolio theory, options pricing, dynamic trading, and so forth. No computer experience is required; this course will help students develop the necessary programming skills to build fairly sophisticated models. Prerequisite: FNCE 5101

FNCE 5630 – Real Estate: Personal Investment Perspective

Real estate is a major component of household wealth. Important household real estate decisions include, for example, where to buy a house; renting versus owning a home; choosing between alternative mortgage instruments; understanding the house purchase transaction; and the risks and returns of real estate investing. This course surveys the fundamentals of real estate from a personal investment perspective. Prerequisite: FNCE 5101

FNCE 5894 – The Global Economics of Energy

Energy has been in the news a lot recently. It is something modern societies cannot live without. This course examines where energy comes from, how it is transformed into useful products such as gasoline, fuel oil, and electricity, and what impact it has on the world economy. The course starts with an examination of crude oil, the basis for much of the energy value chain. Students will examine where the reserves of oil and natural gas are found, the geopolitics of energy, who the large producing countries and companies are, how crude oil is transformed into useful products, and how it gets to the end user. Discussion will also include study of the electricity industry, both public and independent power producers, study of the stocks of some companies that operate in this space, and alternative energy, including solar, wind, and biomass. Prerequisite: FNCE 5101

FNCE 5894 – Investment Valuation

In the volatile stock market environment that has existed since the dot-com bubble burst, investors need a solid grounding in valuation techniques now more than ever.  During the semester students will learn three different approaches to investment valuation: Balance Sheet Reproduction, Earnings Power Valuation and Discounted Cash Flow analysis. This course starts out with classic Graham and Dodd methodology, and progresses to more recent value scholarship.  The course will utilize real time company studies and practical applications of the value approach, including a project that requires researching and placing a valuation on an investment idea. Prerequisite: FNCE 5101

FNCE 5894 – Mergers & Acquisitions

The primary objective of this course is to provide the student with the theoretical background as well as the analytical and technological tools necessary to analyze corporate combinations, restructurings, and bankruptcies. Prerequisite: FNCE 5101