Courses offered in Finance
Undergraduate Level Courses
Financial Management (MGMT 31000):
This introductory course provides students with a foundation to build a meaningful understanding of corporate finance and the role of the financial manager. The financial manager's task is to attempt to maximize the value of the firm to its owners by making investing and financing decisions that improve the firms risk/return tradeoff. We focus on two basic decisions: the investment decision, (to what projects should funds be allocated), and the financing decision, (where should the funds be obtained). As the course progresses we will cover such topics as: discounted cash flow valuation, bond valuation, stock valuation, cost of capital determination and the decision criteria to apply to project evaluation.
Investment Management (MGMT 41100):
This course is designed to introduce students to the fundamental concepts in investment management. The major topics covered will include: optimal portfolio selection and asset allocation, asset pricing models, performance evaluation, individual security selection and valuation. While the main emphasis of the course is on common stocks, we will also spend a fair amount of time on fixed income securities and derivatives. The course is fairly quantitative and students should be familiar with the basic concepts of probability and statistics and be comfortable using spreadsheet packages like Excel.
Financial Markets and Institutions (MGMT 41200):
This course provides a comprehensive survey of financial securities, the markets in which they trade, and the institutions facilitating the creation and exchange of these financial instruments. We will cover the pricing and trading of several securities including stocks, bonds, and derivatives; special emphasis will be given to the determination of interest rates. We will survey major financial markets in the U.S. and abroad. Key financial institutions will be examined with a focus on how they manage their assets and liabilities and how innovative securities support that management. We will also address various aspects and implications of financial regulation and deregulation, and the globalization of financial markets.
Advanced Corporate Financial Management (MGMT 41300):
MGMT 413 investigates the theory and practice of corporate financial management. Topics include short and long term financial planning, capital investment analysis, corporate capital structure, dividend policy and firm valuation. The course is lab-based with a high emphasis on the use of Excel to build financial models.
International Financial Management (MGMT 41500):
The course provides a framework for understanding how corporate financial decision making is affected by exchange rate risk, country risk, international taxation, regulations etc. The discussion takes the perspective of the management of a multinational corporation. Topics covered include the international financial markets, the measurement and management of exchange risk and political risk, and the financial aspects of the decision to undertake a foreign project, set up cross-border operations or acquire a foreign company.
Graduate Level Courses (excl. PhD Level Courses)
Fixed Income Securities (MGMT 51100):
This course provides an introduction to fixed income securities and the analytic tools used by participants in these markets. By its nature, fixed income is a very broad subject that would take (literally) years to cover in depth. Of necessity, this course will be selective in the material it covers. Primary focus will be on the fundamental concepts underlying fixed income markets. With a solid grasp of the underlying theory, it will be much easier to pick up the rest while working in industry. We will also place a strong emphasis on applications using realistic examples. The course will be quantitative with lots of formulas and number crunching.
Financial Management I (MGMT 61000):
This course is an introduction to Financial Management. As such, the course addresses the two basic financial problems that all companies face: (1) On what should funds be spent (i.e., investment decisions) and (2) From where should funds be obtained (i.e., financing decisions). Specific topics include financial statement analysis, financial planning, stock and bond valuation, project analysis (i.e., capital budgeting), estimating the cost of capital, understanding and managing the corporate capital structure, sources of financing, issuance of debt and equity, introduction to investment banking, corporate valuation, and introduction to mergers and acquisitions. Readings, case analyses, and problem sets focus on the basic tools used by financial analysts and financial decision makers.
Advanced Corporate Finance (MGMT 61100):
This course builds on the material covered in MGMT 61000. Topics covered include advanced corporate valuation techniques, debt and equity issues, dividend policy, bankruptcy reorganizations, other capital structure reorganizations.
Portfolio Management I (MGMT 61400):
The objective of this course is to provide students with a sound foundation for the main concepts in investment management and portfolio theory. The major topics covered will include: trading mechanics, optimal portfolio selection and asset allocation, the theory of asset pricing models, and performance evaluation. The main emphasis of the course is on common stocks, especially portfolios. The course does not cover individual security selection and valuation. This course is fairly quantitative and relies on the economic theory and analytical tools developed throughout the course. The materials covered in the class have direct real world applications. We will spend a great deal of time discussing empirical evidence. As this is an advanced class, tenets of investment theory are analyzed from a very critical standpoint. Unfortunately, this will often times lead to answers such as "it depends", "no one knows," and "we need more data." Given the empirical nature of the course, it is crucial for the students to follow financial press regularly.
International Finance (MGMT 61500):
The course provides a framework for understanding how corporate financial decision making is affected by exchange rate risk, country risk, international taxation, regulations etc. The discussion takes the perspective of the management of a multinational corporation. Topics covered include the international financial markets, the measurement and management of exchange risk and political risk, and the financial aspects of the decision to undertake a foreign project, set up cross-border operations or acquire a foreign company.
Options and Futures (MGMT 64100):
This course provides an introduction to derivative securities. Although the subject is inherently quantitative, the class will emphasize the intuition underlying the pricing of derivatives, rather than technical details and the state-of-the-art techniques. To develop the intuition, a significant portion of the class will cover binomial pricing techniques. This will allow coverage of the Black-Scholes model to focus on the economics, rather than the mathematics. Upon completion of the class, a student should understand the idea of arbitrage pricing, be able to use the binomial and Black-Scholes models for pricing and hedging, and understand the role of derivative securities in the context of other applications (e.g., risk management, real options, and executive compensation).
Portfolio Management II (MGMT 64200):
This course is a continuation of Portfolio Management I (MGMT 61400).
Financial Instruments and Strategy (MGMT 64300):
The course will use text readings, problems, and case analyses with two objectives. First, it will broadly indentify financial risks impacting the firm (principally foreign exchange and interest rates but touching commodities). It will review how firms assess these risks looking at integrated risk management, Value at Risk (VaR), etc. and discuss the financial tools (i.e., derivatives) available to manage that risk. There is no particular order necessary to take certain finance electives but the intent is for the first portion of the course to pull together the International Financial Management class, the Fixed Income class, and Liability Funding which is covered in this course. Second, MGMT 643 will address liability funding (bonds, commercial paper, bank lines of credit, etc.), what drives the cost of those instruments, liquidity, etc. To understand the cost of corporate debt, it will briefly touch upon the debt versus equity financing decision, the impact of credit ratings, and potential investors other investment alternatives (U.S. Treasuries, Mortgage Backed Securities, Municipal Bonds, etc.).
Venture Capital and Investment Banking (MGMT 64400):
This course examines the process of financing the corporation in private and public securities markets. The sequence of topics roughly parallels the life cycle of a typical corporation. We begin by studying venture capital and the financing of entrepreneurial companies. Second, we study the investment banking and capital acquisition process employed for public securities issues. Third, we examine capital structure decisions such as the basic debt-equity decision, the use of hybrid securities such as convertible debt and PIPEs, and structured financing arrangements such as securitizations and project financing.
Mergers, Acquisitions, & Corporate Control (MGMT 64500):
This course explores mergers, acquisitions, and other corporate control transactions using readings, case study analysis, and project work. The focus is on the mechanics of the transactions themselves, the valuation of the firms involved, the role of the various parties involved, and the causes and consequences of these activities. Because mergers and acquisitions represent significant changes that involve the entire enterprise the course pulls together material covered in previous finance courses and links financial decisions with the overall strategy of the firm.