Crunch numbers and make value-maximizing decisions that are crucial to a business’ success.

Through the Finance concentration you’ll understand the implications of corporate decisions, such as financing, investment, risk management, and mergers and acquisitions. After completing this concentration, you may consider a career in investment banking, commercial banking, and money management, among others.

In addition, the Finance concentration can be combined with the Health Sector MBA, Social Impact MBA, or MBA+ MS in Digital innovation programs, or with one of our other concentrations such as marketing, entrepreneurship, or operations & technology management.  The choice is yours – you’ll receive a personalized degree because we give you the freedom to tailor it to fit your goals.

Required Courses

Students need to choose between Finance 1 or Financial Management courses. Finance 2 is required only for students in the full-time MBA program.

  • Finance 1 (QSTFE721)

    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.

  • Financial Management (QSTFE722)

    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.

  • Finance 2 (QSTFE810)

    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.

  • Corporate Financial Management (QSTFE820)

    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.

  • Investments (QSTFE823)

    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.

Elective Courses (2)

Two courses from the following list are required:

  • Financial Statement Analysis & Investor Decisions (QSTAC814)

    This course is designed to develop skills in interpreting and analyzing the financial reports prepared by firms for investors and creditors. The following topics are covered: 1) analyzing profitability and risk , (2) understanding the major accounting choices affecting financial statements and managerial incentives that influence these choices, (3) assessing the quality of earnings, (4) using cash-flow based and earnings-based valuation models. The course also includes a brief review of some important accounting principles, emphasizing areas that were not covered in AC710. [Lectures, exercises, exams, and project.]

  • Finance 2 (QSTFE810)

    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.

  • Advanced Corporate Finance (QSTFE821)

    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.

  • Fixed Income Markets (QSTFE822)

    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.

  • Advanced Topics in Investments (QSTFE825)

    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.

  • International Financial Management (QSTFE827)

    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.

  • Futures, Options and Financial Risk Management (QSTFE829)

    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.

  • Private Equity: Leveraged Buyouts (QSTFE850)

    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.

  • Entrepreneurial Finance (QSTFE854)

    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.

  • Competitive Decision Making (QSTPL815)

    This course explores the strategies of decision-makers in a variety of competitive situations. The main topics apply game theory in a number of settings: 1) market competition; 2) competitive bidding; 3) bargaining, negotiation, and arbitration; and 4) group decisions in organizations. In most of these settings, optimal decisions call for cooperation as well as competition. Examples are drawn from a wide variety of managerial settings. Extensive use is made of interactive exercises, games, and simulations. OB 853 and PL 815 take complementary approaches to the study of negotiation. The former emphasizes key psychological, interpersonal, and organizational insights, while the latter focuses on economic factors and strategies. Students are free to take both courses.

  • Macroeconomics in the Global Environment (QSTPL834)

    Macroeconomics is the study of the aggregate behavior of global market participants, i.e. consumers, firms, workers, governments, central banks, foreign investors. Decision making by investment bankers, product/sales managers, policy makers, or consumers inevitably rely on an understanding of the main forces driving GDP, inflation, unemployment, interest rates, and exchange rates. Consider these questions: 1. Should new consumer durable products be launched during recessions? 2. Are countries that experience high productivity growth good investment targets? 3. Will interest rates drop if the US government starts buying back its debt? 4. With significant liquidity demands by the US economy from the public sector, the household sector and businesses, what explains the low US interest rates? Are these factors expected to keep interest rates low also in the future? 5. Can the Euro boost productivity in Europe in the medium to long run and what are the competitiveness challenges for US businesses of such changes? 6. What are the economic effects of wars and how should they be financed? These and other issues will come up in the course. The main goal of this course is to provide a coherent framework that you can use to understand economic events as you confront them in your work environment.