Finance

  • QST FE 101: Introduction to Finance
    Undergraduate Prerequisites: Pre-req for Questrom students: SM131. Co-req for non-Questrom students: SM131 strongly recommended.
    Required of all Questrom freshmen. This course offers a rigorous overview of principles of finance, such as time value of money, interest rates, basic valuation of cash flow streams, and basic stock and bond valuation. It uses a combination of teaching materials including online problem solving and case writing that will help the student through the intensive syllabus. FE 101 and FE 323 offer a comprehensive overview of finance to Questrom students.
  • QST FE 323: Financial Management
    Undergraduate Prerequisites: QST AC222, IS223, OB221, QM222, and ES275 or SM151.
    Component of QST SM323, The Cross Functional Core. Introduces students to the themes of financial decision making: valuation and risk management. The focus is on the problems of forecasting, capital budgeting, working capital management, project risk management, and financing in a cross-functional context. A semester- long business- plan project explores the interaction between marketing, operations, management information systems, and finance decisions. The course compares the financial objectives of the manager and the investor. Introduction to the time value of money, securities valuation, portfolio diversification, and the cost of capital. 4 cr.
  • QST FE 427: International Financial Management
    Undergraduate Prerequisites: QST FE323
    Required for International Management concentrators. Managing financial risk in the global environment. Introduction to foreign exchange markets, spot, forward, futures, options and swaps, and to the international bond and money markets. Discussion of market structure and participants, and main financial instruments. Analyzes and discusses tools of currency risk management. 4 cr.
  • QST FE 429: Futures, Options, and Financial Risk Management
    Undergraduate Prerequisites: QST FE323
    Covers the theory of futures pricing and option pricing, and applies the theory to develop a framework for analyzing hedging and investment decisions using futures and options. Attention is paid to practical considerations in the use of these instruments, especially in financial risk management. 4 cr.
  • QST FE 430: Entertainment Finance
    Undergraduate Prerequisites: QST FE323
    Examines financial structures and decisions in entertainment and media realms including feature film, television, music, live performance, sports, digital media, and related business endeavors. The course covers the various ways entertainment and media companies raise capital, budget capital, and manage return on investment to shareholders and other stakeholders. Students study business models within each segment to understand the financial, operational, and legal constraints and best practices under which media and entertainment firms operate. Offered in Los Angeles.
  • QST FE 442: Money, Financial Markets, and Economic Activity
    Undergraduate Prerequisites: QST FE323
    Required for Finance concentrators. The financial system and its functions. The role of money and the importance of interest rates in determining economic activity; determinants of level of interest rates. Operation of central banks; the goals and instruments of monetary policy. The roles, activities, and risk management of financial institutions. Instruments traded in money and capital markets, and their valuation. Role of derivative securities; systemic risk and other contemporary issues in the financial system
  • QST FE 445: Investment Analysis and Portfolio Management
    Undergraduate Prerequisites: QST FE323
    Required for Finance concentrators. Introduction to the investment management process. Defining investment objectives and constraints. Introduction to Modern Portfolio Theory, CAPM, APT, Efficient Markets, stock and bond valuation models. Immunizing interest-rate risk. Active vs. passive investment strategies, fundamental vs. technical analysis, trading practices, and performance evaluation. Introduction to the role of futures and options in hedging and speculation. Students are expected to become familiar with current events in the financial news.
  • QST FE 449: Corporate Financial Management
    Undergraduate Prerequisites: QST FE323
    Required for Finance concentrators. Covers the financial manager's role in obtaining and allocating funds. Includes topics such as cash budgeting, working capital analysis, dividend policy, capital investment analysis and debt policy as well as their associated risks. Valuation of companies, mergers and acquisitions, and bankruptcy are covered. The course requires using financial models and spreadsheets. Applications are made to current events and everyday business finance problems.
  • QST FE 450: Private Equity: Leveraged Buyouts
    Undergraduate Prerequisites: QST FE449
    Exposes students to, and demystifies, the world of Private Equity (PE). The focus is centered on LBOs and their position in the "alternative asset" class. Students learn about the activities of a PE firm including formation, fund-raising, investing (including deal structure, terms, due diligence, and governance), and exiting. Also discussed are what other industry sectors serve or are affected by PE and who the players are. Case study and class participation will be the primary modes of learning.
  • QST FE 454: Investment Banking
    Undergraduate Prerequisites: QST FE449
    Provides an overview of the economic functions provided by investment banks including a history of the industry, current events, public policy issues and the difference between large, full service investment banks and smaller, boutique firms. Topics include: What do investment bankers do? What are the different types of analyses performed by investment bankers? What are the various types of financial securities? What is the underwriting process and how are securities priced? Focuses on the issuing process and pricing for equity, fixed income, and equity-linked securities. Also focuses on the role of investment banks in mergers, acquisitions, divestitures, and other restructuring. Additional topics include equity research, capital markets, institutional sales, trading, asset management, securitization, industry regulations, as well as typical career paths and opportunities.
  • QST FE 455: Financing New Ventures
    Undergraduate Prerequisites: QST FE323
    Students will be expected to have mastered key finance concepts including cash flow analysis, NPV, IRR and basic option pricing theory prior to entering the course. Introduction to raising "angel" funding and venture capital financing for start-up firms. Focus on capital structure analysis, capitalization tables, payoff diagrams, term sheets, equity incentives and negotiating with investors. Students are expected to prepare case studies for class discussion and become familiar with current events in the financial news about start-up company financings.
  • QST FE 456: Fixed Income Analysis
    Undergraduate Prerequisites: QST FE442
    Covers the analytic techniques used in fixed-income markets to value and measure risk on traditional fixed-rate bonds, floating-rate notes, bonds having embedded options (callable and putable bonds), structured notes, and interest rate derivatives used to manage bond portfolios (primarily interest rate swaps, caps, and floors). Extensive use is made of Excel spreadsheet analysis, including the development of a binomial term structure model to value securities. Focus is on the impact of counterparty and issuer credit risk in fixed-income valuation. 4 cr.
  • QST FE 458: Equities and Securities Analysis
    Undergraduate Prerequisites: QST FE323
    Students learn the fundamental skills that are applied in equity security analysis. These skills include benchmarking a firm's financial performance and analyzing the value of a firm using multiple approaches. Key topics include: competitive advantage, return on invested capital, financial modeling and financial statement analysis, and value-based metrics (Economic Value Added).
  • QST FE 469: Real Estate Finance
    Undergraduate Prerequisites: QST FE323
    Provides an introduction to and an understanding of real estate finance. Draws together and considers major functional areas including: structuring, ownership, finance, taxation, property valuation and analysis. The course provides a framework for decision making in the real estate investment and finance fields. The course is specifically designed to offer students interested in real estate careers a foundation from which to build. 4 cr.
  • QST FE 498: Directed Study: Finance
    Directed study in Finance. 2 or 4 cr. Application available on Undergraduate Program website.
  • QST FE 717: Topics in Financial Management
    To enroll, students must have completed the finance requirements in their undergraduate business degree. Given their knowledge of basic financial concepts, students learn more advanced valuation methods, risk-return tradeoffs, and investment principles.
  • QST FE 721: Finance 1
    Graduate Prerequisites: MG790, PL727, QM716, AC710
    The objective of this course is to introduce the students to the theory and practice of corporate finance, and to provide the students with a set of analytical tools necessary to answer the most important questions related to firms' valuation and investment decision making first under certainty and then under uncertainty. The course can be divided into the following three building blocks: valuation, investment decisions, and the relation between risk and return.
  • QST FE 722: Financial Management
    Graduate Prerequisites: OB712/713/715, AC710/711/712 (previous or concurrent)
    Financial Management examines three sets of problems: 1) saving and investment decisions by households, 2) investment and financing decisions by corporations, and 3) the role of securities markets and financial intermediaries in the economy. Decisions today affect the timing of and uncertainty about future flows of income; both timing and risk determine the current value of those future flows. This course develops the tools required to analyze these decisions and their interaction within the financial system.
  • QST FE 730: Economics and Management Decisions
    Graduate Prerequisites: OB712/713/715, (QM711/716/717 recommended)
    The aim of the course is to present many of the decision problems managers face and to present the economic analysis they need to guide these decisions. In the first half of the course, microeconomic tools are used to structure complicated decision problems about production, pricing, investment, and other strategic issues, address uncertainty through probabilistic forecasts and sequential decisions. An additional goal is to distinguish different market structures and apply competitive strategies using game theory. In the second half, the focus shifts to the study of the national and global economic environments within which companies operate. We identify the drivers of fluctuations in GDP, inflation, interest and exchange rates, and other key features of the economies. Since governments play key roles in determining the fate of economies and companies, the final theme is the rationale for and efficacy of government policy tools.
  • QST FE 810: Finance 2
    Graduate Prerequisites: QST FE721
    This course extends fundamental concepts of corporate finance and asset pricing introduced in the core. Corporate finance concepts covered are capital structure decisions, payout policy decisions, and real options. Asset pricing topics include market efficiency, multi-factor models for the risk and return, arbitrage pricing theory and contingent claim analysis and its use in valuation and risk management. The concepts are illustrated in practical examples that prepare students for their summer internships.