FINANCE (FIN)

Introduction to the principles and techniques utilized in the financial management of business. Topics to be covered include interpretation of financial statements, time value of money, stock and bond valuation, ratio analysis, risk and return, capital budgeting, cost of capital, leverage, and capital structure.

A continuation of FIN 325 with a focus on both long-term and short-term financial planning and management. Topics will include cost of capital, financial leverage, capital structure, dividend policy, working capital management, and international corporate finance.

In this course students develop the ability to construct financial models in order to answer complex financial questions. Students will learn how to access financial data and how to use that data to complete analyses using a variety of tools. Microsoft Excel will be utilized to format data, perform numerical analysis, and generate graphical presentations of data. Financial topics that will be addressed include discounted cash-flow analysis, capital budgeting, the cost of capital, risk, and financial planning and forecasting.

An examination of investment decision making using economic analysis. Topics include types of investments; investment objectives; investment return and risk; security analysis; portfolio theory; the efficient market hypothesis; fundamental analysis; technical analysis; the capital asset pricing model; and other topics to be chosen by the instructor.

This course examines the various techniques used by investment professionals to value debt and equity securities of public and private companies. Stock valuation methods that will be covered include the dividend discount model, the price-earnings ratio, and financial statement analysis. Bond valuation will focus on pricing, risk, and portfolio management. Measuring the value of derivative securities such as options and futures will also be discussed.

This course focuses on financial concepts, tools and techniques and their impact on the firm through an examination of case studies. Students utilize material from previous finance courses to assess options and offer recommendations for a variety of realistic case-based problems involving financial decision-making. Topics covered include ethical decision making in finance, financial analysis, forecasting, estimating cost of capital, capital budgeting and resource allocation, management of the firm's equity through dividends and share repurchases, assessment of corporate capital structure, and working capital management. Emphasis is on identifying problems, developing solutions, and presenting cases in an effective and professional manner.

The course builds on the knowledge gained from the core course FIN 358: Investment and Securities Valuation. It will help students develop a broad knowledge and understanding of issues relevant to portfolio management practice. Through the combination of theory and practical cases, students will learn Investment Policy Statement for individual and institution investors, process and strategies of portfolio optimization, portfolio performance evaluation, and portfolio rebalancing.

The course is about analyzing prices of financial assets traded in competitive markets through econometric methods; it utilizes concepts from microeconomics, finance, mathematical optimization, data analysis, probability models and statistical analysis. After an overview of multiple regression, dummy variables and panel data, the course focuses on methodologies in modeling and testing time series data (analysis of data sets that change over a time period): Cointegration, Autoregressive Integrated Moving Average (ARIMA) models, Generalized Autoregressive Conditional Heteroskedasticity (GARCH), Granger Causality, Event Study, and Monte Carlo analysis. The last portion of the course is spent on studying classic applications found in literature and on applied work undertaken by students on various topics of their choice. Familiarity with econometric software will be essential as assignments will have to be carried out using standard packages such as Excel and STATA.