Finance

  • GSM 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.
  • GSM FE 721: Finance 1
    Graduate Prerequisites: MG650 or MG700, 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.
  • GSM FE 722: Financial Management
    Graduate Prerequisites: OB712/713/715, AC710/711/712 (or concurrently)
    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.
  • GSM FE 730: Economics and Management Decisions
    Graduate Prerequisites: OB712/713/715 (Recommend QM717)
    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.
  • GSM FE 810: Finance 2
    Graduate Prerequisites: FE717/721/722
    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.
  • GSM FE 820: Corporate Financial Management
    Graduate Prerequisites: FE717/721/722
    This course provides an in-depth analysis of financial considerations relating to corporate growth. It addresses the setting of financial and corporate goals in terms of maximizing shareholder wealth and relationships among working capital, debt levels, capital costs, dividend policy, growth and the value of the firm. It also considers the requisite financial analysis associated with mergers and acquisitions and bankruptcy.
  • GSM FE 821: Advanced Corporate Finance
    Graduate Prerequisites: GSM FE 820.
    This course is designed for students who are pursuing careers in corporate finance (such as chief financial officer, treasurer, or controller) in an industrial corporation, in the corporate finance department of an investment banking firm or in investment banking. The course provides follow-up on the basic financial frameworks and analytical methods outlined in introductory courses. Three primary areas are covered: risk management; agency, information, and psychology; and real options.
  • GSM FE 822: Fixed Income Markets
    Graduate Prerequisites: FE717/721/722
    This is a course primarily on fixed-income debt securities and markets. Emphasis is placed on the factors that determine bond yields, factors such as the coupon and maturity structure, liquidity, credit risk, and tax status of the security, and on measures of return and risk, statistics such as the yield to maturity, horizon yield, duration, and convexity. We will cover government debt (Treasuries and municipals), corporate bonds (investment-grade and high-yield), agency (Fannie Mae and Freddie Mac) and mortgage-backed debt created via securitization (i.e., collateralized mortgage obligations). We will emphasize how interest rate and credit derivatives are used to manage portfolios of fixed-income securities.
  • GSM FE 823: Investments
    Graduate Prerequisites: FE717/721/722
    Introduction to the investment management process. Defining investment objectives and constraints. Introduction to Modern Portfolio Theory, CAPM, Fama- French factors, APT, efficient markets, stock, bond and option valuation models. Immunizing interest-rate risk. Active and passive investment strategies, fundamental analysis, trading practices, and performance evaluation. Introduction to the role of futures and options in hedging and speculation. Arbitrage and hedge fund strategies. Understanding the assumptions underlying the different approaches and their limitations. Topics related to current events and the recent financial crisis.
  • GSM FE 825: Advanced Topics in Investments
    Graduate Prerequisites: PL714/727/FE730, FE823
    This course is about the theory and practice of integrated wealth and risk management. It is intended for students who plan a career in the financial services. It focuses on building quantitative decision models for individual investors, investment firms, and pension funds. Subjects covered include the framing and quantitative modeling of lifecycle saving, investing, and risk-management decisions, and the design and production of retirement products, and other structured investment contracts to achieve targeted objectives.
  • GSM FE 827: International Financial Management
    Graduate Prerequisites: FE717/721/722
    This course analyzes corporations' exposures to financial risks in the global economy. It discusses national currency systems and currency volatility, and how corporations identify, measure and deal with exposure to such volatility. It introduces students to foreign currency markets, currency derivatives markets, and international financing markets that help corporations deal with the various risks they face and take advantage of opportunities that arise in foreign markets.
  • GSM FE 829: Futures, Options and Financial Risk Management
    Graduate Prerequisites: FE717/721/722
    Futures and stock options are recognized as important tools of investment and risk reduction. This course covers the theory of futures and option pricing and develops a framework for analyzing hedging and investment decisions using futures and options. Attention is paid to practical considerations in the use of these investments, tax and accounting issues and the institutional features of the market in which the various instruments are traded.
  • GSM FE 850: Private Equity: Leveraged Buyouts
    Graduate Prerequisites: FE810, FE820 strongly encouraged.
    Private Equity (PE) is a major force in the capital markets, acquiring household names such as Dell, Toys R Us, Neilson, Nieman Marcus, and many more. This course exposes students to, and de-mystifies, the PE world. The focus is centered on LBOs and their position in the alternative asset class. Students learn about the activities of PE firms including formation, fundraising, investing (deal structure, terms, due diligence, governance) and exiting. We also discuss how other industry sectors serve or are affected by PE and who the players are. This is a capstone course that integrates marketing, strategy and finance to further the understanding of business evaluation. Case study and class participation are the primary modes of learning. Course offered jointly with undergraduate course SMG FE 450.
  • GSM FE 854: Entrepreneurial Finance
    Graduate Prerequisites: AC710/711/712, FE717/721/722
    The focus of FE854 is on the development of financial and business skills to identify, evaluate, start and manage new ventures. A comprehensive understanding of finance is an essential ingredient in the "recipe" for business success. No longer can the assumptions underlying financial projections be treated as "black boxes." In many cases, the answer is less important than the analytical process used to calculate it. Readings for the course will primarily be in the form of case studies, and will be supplemented by guest speakers, presentations, and readings from academia and industry.
  • GSM FE 898: Directed Study: Finance
    Graduate Prerequisites: Consent of instructor and the department chairman.
    Graduate-level directed study in Finance. 1, 2, or 3 cr. Application available on the Graduate Program Office website.
  • GSM FE 918: Doctoral Seminar in Finance
    This doctoral course, is designed to provide students with an introduction to financial economics. This lecture-based course will cover no arbitrage conditions, preferences and risk aversion, portfolio selection, the capital asset pricing model, asset pricing and dynamic asset pricing. In addition to lectures, this class will include readings and assignments. Open to MBA students with faculty member's permission. Must have strong quantitative background and several courses in finance or economics.
  • GSM FE 920: Advanced Capital Markets
    This course provides a comprehensive and in-depth treatment of modern asset pricing theories. Extensive use is made of continuous time stochastic processes, stochastic calculus and optimal control. In particular, martingale methods are employed to address the following topics: (i) optimal consumption-portfolio policies and (ii) asset pricing in general equilibrium models. Recent advances involving nonseparable preferences, incomplete information, incomplete markets, constraints and agents diversity will be discussed.
  • GSM FE 998: Directed Study: Finance
    Graduate Prerequisites: Consent of instructor and the department chairman.
    PhD-level directed study in Finance. 1, 2, or 3 cr. Application available on the Graduate Program Office website.
  • SMG 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 SMG 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 the redesigned FE 323 offer a comprehensive overview of finance to SMG students.
  • SMG FE 323: Financial Management
    Undergraduate Prerequisites: SMG FE 101 or SMG SM121/122 or SMG SM299; SMG AC222; SMG OB221; SMG SM151 or SMG ES275; SMG QM222
    Component of SMG SM 323, 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.