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Purdue Master's

MS(F) Curriculum

Purdue University’s 10-month Master of Science in Finance program enables students to acquire a premier degree from one of the nation’s top business schools while requiring limited time away from the job field. In your classes at Purdue, your studies will include classes in accounting; mergers and acquisitions; economics; risk management; and more.

In addition, you’ll cultivate your leadership skills, expand your potential, and adopt a global perspective. Our program typically enrolls students from a wide variety of academic backgrounds, with most students in recent classes having degrees in various areas of business, economics, and engineering. There is no prerequisite course work as all MS (Finance) foundation courses are taught from the expectation that students do not have a prior background. Having a solid quantitative background, including completion of some college-level math or statistics course work can be advantageous.

Be a part of Purdue, a university known for its technologies, cutting-edge initiatives and innovations to solve today’s global challenges. Our distinguished faculty members create an active dialogue with students — taking you far beyond lectures. Go ahead - take the challenge. Launch your finance career with one of the world’s best business schools in Purdue University’s Krannert School of Management MS(F) program.

Graduate Level Courses (excluding PhD Level Courses)

Summer Module

Accounting for Manager
This course employs a user's perspective on the firm's database. First, the standard accounting model is developed into a working tool, as no prior study of accounting is assumed. Then illustrative business cases are discussed to show how external reports conform to financial contracts and public regulation. Public reports primarily directed to investors and creditors are analyzed to reconstruct the economic events and managerial decisions underlying generally accepted accounting standards.

Business Analytics
Introduction to quantitative decision procedures under uncertainty. Applications of descriptive statistics, probability models, simulation models, interval estimates, and hypothesis testing to management problems. Managerial-oriented cases are used in instruction.

Financial Management & Advance Corporate Finance
In the first of these courses (MGMT 610), we focus on two basic financial problems that all companies face: (1) On what should funds be spent (i.e., investment decisions)? (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, estimating the cost of capital, understanding capital structure, and estimating firm value. Readings, case analyses, and problem sets focus on the basic tools used by financial analysts and financial decision makers. In Advance Corporate Finance (MGMT 611), the course builds on the material covered in MGMT 610. Topics covered include advanced corporate valuation techniques with applications in mergers/acquisitions, initial public offerings, and leveraged buyouts; debt, equity, and convertible securities issues; dividend policy; bankruptcy reorganizations; and advanced capital budgeting techniques.

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, and the theory of empirical use of asset pricing models. 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.

Fall Module 1

Valuation & Financial Statement Analysis
This course establishes how to use accounting information to make business and investment decisions. Internally, the information is used to assess performance of units, to evaluate performance of upper-level management, to monitor the firm's investment and financing decisions, and for comparison purposes with the firm's rivals. Externally, accounting information is used by financial analysts, investors and (potential) acquirers to assess the value of the firm, by creditors to assess its credit-worthiness, and by regulators.

Launching Global Business Leaders
This course is designed to assist MS(F) students in the development of their leadership and career management skills.

Venture Capital & Investment Banking
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 discussing the advantages and disadvantages of different types of venture financing. Second, we introduce valuation methods in the venture capital setting. Third, we study the venture capital financing contracts, known as the term sheets. Fourth, we discuss the process of exiting investments in young firms. Fifth, we analyze the investment banking and initial public equity offering process for firms. Finally, we examine bankruptcy reorganizations should a firm go under.The course consists primarily of case studies supported by readings on the particular case topic. Students are expected to be prepared for class and will be called upon in class to discuss various issues related to the assigned reading or case study.

Options & Futures
This is an introductory course on derivatives products. The goal is to help students develop a basic framework for analyzing and using financial instruments. The course covers the most fundamental derivatives products: forwards, futures and options. For each derivatives product, the course answers three questions: how is the product traded, how do firms/individuals use the product to manage their risks, and how do you determine the correct price for the product. The nature of the course is quantitative, yet also emphasizes economic intuition. By the end of the course, students should have a good understanding of features of the most commonly used derivatives products and analytical tools needed to make good managerial decisions.

Fall Module 2

Investigation of the causes of macroeconomic fluctuations in the economy. Looks at changes in inflation, unemployment, real output, interest rates, and exchange rates, and explores why they occur,
what their effects are, and what, if any, role government should play in dealing with these problems. A mixture of theory and case studies with reference to historical case studies. Current macroeconomic problems will be discussed with a focus on the international
aspects of macroeconomic problems. 2 credit hours

Mergers, Acquisitions, & Corporate Control
This course covers the major aspects of merger and acquisition transactions: deal strategy, deal analysis, and deal design. It covers the reasons (both good and bad) that transactions are done, the mechanics of the transactions, the valuation of the firms involved, various aspects of deal structure, and the roles of the parties involved. Mergers and acquisitions represent significant changes that involve the entire enterprise. As such, this course pulls together material covered in previous finance courses, while also linking financial decision-making with the overall strategy of the firm and dabbling in law, accounting, and organizational behavior. Material is covered through case study analysis supplemented by related readings and individual assignments. In addition, groups of students write and present a proposal for a deal between real-life firms.

Launching Global Business Leaders
This course is designed to assist MS(F) students in the development of their leadership and career management skills.

Portfolio Management II
The course examines most recent empirical issues in investment management, focusing mostly on market anomalies, trading strategies, and behavioral finance. For the most part, it will be a departure from the efficient markets view of finance in analyzing imperfections in the marketplace and biases in individual decision making. The course begins with an in depth analysis of two key players in the marketplace: mutual funds and hedge funds. These topics will be followed by a lecture on performance evaluation techniques. The course will then continue with an in depth discussion of market efficiency with an emphasis on deviations from market efficiency: market anomalies. It will provide an extensive review of most popular market anomalies and trading strategies used in the marketplace. In the final part of the class, limits to arbitrage and behavioral finance will be discussed in detail. The course consists of lectures, case and paper discussions and in-class experiments.

Spring Module 3

Advanced Business Analytics
This course focuses on quantitative decision procedures under uncertainty applied to business problems. Basic concepts in econometrics and multivariate analysis are studied. Several managerial-oriented case studies are used to illustrate estimation, testing, and regression procedures.

International Financial Management
This course provides an analytical framework for addressing various aspects of financial decision making from the perspective of the management of a multinational firm. We will begin by exploring how changes in the exchange rates may affect a firm’s cash flows and value. As many firms attempt to manage their exchange rate risk exposure through hedging, we will then discuss whether and how firms can hedge currency risk. In the second part of the course, we will mostly focus on capital budgeting decisions. We will see how these decisions are affected by the complications due to divisional differences, currency, tax, and country risk considerations.

Financial Risk Management
This course uses a combination of lectures and cases to study the fundamentals of financial risk management. The course’s main objective is to cover techniques to identify, measure, and manage risks that financial and non-financial firms encounter. Specifically, the course covers equity market risk, interest rate risk, currency risk, commodity price risk, and default risk. Tool-wise, we start with standard exchange-traded derivatives (such as forwards, futures and options); we then move on to over-the-counter products (such as swaps and exotic options). During the course, we also build a framework to integrate financial risk management solutions with a firm's long-term strategy. A basic knowledge of derivatives is recommended before taking this class.


Spring Module 4

Financial Instruments & Strategy
The course 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. Moreover, it 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.).

Fixed Income Securities
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

Managerial Accounting or  Spreadsheet Modeling & Simulation
Managerial Accounting examines the firm's internal systems of costing products or services and their interpretation. A variety of manufacturing and service industries are studied to demonstrate design of flexible cost systems to match the firm's technological, competitive and/or multinational environments. Applications to budgeting, variance analysis, pricing models, performance evaluation and incentives are demonstrated. Case discussion and analytical "what if" modes of instruction are used to enhance managerial skills of students. Design and use of accounting data are linked to other subjects in the program core and to ethical aspects of accounting policy issues.

Spreadsheet Modeling & Simulation covers up-to-date and practical spreadsheet modeling tools that can be applied to a wide variety of business problems especially from finance. The topical coverage consists of the following five modules: (1) Excel functions, skills and financial models; (2) deterministic and stochastic optimization techniques to determine the best managerial actions under internally-and/or externally-imposed constraints; (3) probability distribution fitting techniques to find the most likely description of the uncertainty in future business; (4) simulation modeling techniques to discover and analyze the risk and uncertainties in business environment and processes; (5) application of spreadsheet modeling and simulation techniques in forecasting asset dynamics( stock price) and pricing options and real investment opportunities.

Financial Engineering