FIN7572 Babson College Fund

3 Elective CreditsThe Babson College Fund is a two-semester course, where selected students manage a portion of the Babson College endowment. The Babson College Fund Office selects undergraduate and graduate students to be analysts and portfolio managers.

By learning the basics of security analysis and portfolio management, it is hoped that students will be prepared to take jobs in the Investment Management and Investment Banking industries post-graduation.

The Program Director and Executives in Residence are committed to helping this pursuit as much as possible. The course also requires that students refine their networking skills and develop a proficiency in the analytical tools available through the Cutler Center to maximize their employment prospects.

Prerequisites: Program Director (Patrick Gregory) Permission

FIN7502 Capital Markets
3 Elective CreditsThis course provides a survey of modern capital markets and a framework for understanding their continuing transformation. The course is suitable either for a person looking to make a career in finance or a generalist looking to broaden their knowledge of financial markets. The course begins by studying the fixed income markets, concentrating on Treasury bonds and the determinants of the yield curve. The course also considers certain derivatives, such as options and interest rate swaps. Mortgage markets are studied by analyzing structured mortgage products as well as the role financial intermediaries play in mortgage finance. The course proceeds to consider the causes and the effects of the credit crisis on various markets and intermediaries, including investment and commercial banks, and the shadow banking system. The course then turns to the equity markets. In this section, we first consider corporate control contests, including a takeover of a U.S. firm by foreign bidder. We analyze the market for money management products, including mutual funds, and exchange-traded funds (ETFs), and robo-advisers. The course concludes by considering traditional vs. new mechanisms for the trading of stocks, including electronic markets and high frequency trading.

Prerequisites: FIN7200, FIN7800 or MSF Program

FIN7516 Corporate Finance: Evaluating Opportunities
(Formerly Strategic Corporate Investment)
3 Elective CreditsIf you have taken and passed FIN7506, you cannot register for FIN7516, as these two courses are equivalent

This course is designed for those interested in evaluating complex long-term strategic investment proposals and valuing firms and subsidiaries for merger and acquisition purposes. Building on the foundation of the finance core, it explores finance theory to identify pitfalls, common mistakes, and best practices in corporate valuation. It expands valuation skills by introducing the equity approach and the adjusted present value (APV) valuation method, the preferred approach when capital structure is changing over time (e.g. in private equity transactions). It also covers the identification and valuation of real options embedded in strategic initiatives.

Prerequisites: FIN7200 or FIN7800

FIN7511 Corporate Finance: Raising Capital

(Formerly Financing the Firm)

3 Elective Credits

This course is designed to help students develop analytical and communication tools and skills to build and present financing strategies and manage the right hand side of the balance sheet. It explores the theoretical and practical issues of capital structure design and considers firm financing alternatives, including equity, long-term debt, hybrid securities, leasing, securitization, project finance, and It also examines the processes through which securities are issued and capital is raised, such as angel financing, venture capital and private equity, and public offerings. The course also explores share repurchase, dividend policy, and risk management.

Prerequisites: FIN7200 or FIN7800

FIN7550 Derivatives: Theory and Practice
3 CreditsThis course examines the pricing and use of derivatives in depth. It will cover the mathematical underpinnings of forwards, futures, options, swaps and more exotic derivatives, as well as the practical uses of these derivatives to hedge and manage risk. This course will cover the Black-Scholes option pricing formula, binomial trees and risk-neutral pricing. Applications include financial hedging of foreign exchange risk, commodity risk, and interest rate risk; as well as portfolio immunization techniques.

Prerequisites: FIN7200 or FIN7800

FIN7503 Equities
3 Elective CreditsThis course will address both theoretical and practical issues that arise in equity analysis and portfolio management. Students will develop a framework for equity investing that includes idea generation, security analysis, valuation techniques (e.g. Discounted Cash Flow (DCF) and relative value analysis (COMPCO)), equity portfolio construction, and performance measurement. Equity valuation and equity portfolio management are as much art as science so the course will focus on the challenges equity professionals face in the pursuit of alpha.

Prerequisites: FIN7200, FIN7800 or MSF program

FIN7800 Finance

2 Credits (Core MBA)If you have taken and passed FIN7200, you cannot register for FIN7800, as these two courses are equivalent

This course provides an introduction to the principles and practices of financial decision making. It introduces the foundation concepts of the time value of money, the valuation of securities, and forecasting. These concepts are used to show how managers can analyze the risk and return of capital investment proposals and identify those projects that are expected to create shareholder value. The concepts also are used to estimate the value of an enterprise for purposes of initial public offering (IPO) and corporate acquisitions. Financial modeling will be at the heart of the course using Excel.

Students are strongly encouraged to complete ACC7800 prior to taking this course.

FIN7517 Finance and Sustainability
(Formerly Finance in a World of Changing Values)
3 Elective CreditsThis course extends the rigor of traditional financial theory to the concept of sustainability. There is broad and growing interest in socially conscious, mission, green and/or triple-bottom line investing. The course will concentrate on practical applications through case analysis and supporting theory will be presented through lectures and course notes. The United Nation's Principles of Responsible Investment as well as mainstream certifications, such as the CFA Institute's certificate in ESG and the GARP Sustainability and Climate Risk certificate, will serve as a backdrop for the course. Students will have the opportunity to enhance their understanding of sustainable finance and to apply financial principles for decision-making through discussion, case analysis, and student presentations. In addition, students will be challenged to find their own place in the inevitable future of the field of sustainable finance, whether as an informed observer or as an active participant.

Prerequisites: FIN7200 or FIN7800

FIN6110 Finance for Entrepreneurs

1.5 Credits

This course will translate established principles and tools from corporate finance into the entrepreneurial environment. Specific topics include milestones and staging, alternative forms of funding, forecasting for new ventures, financial strategy, and valuation. Through hands on workshops and case studies, students will learn how to negotiate funding terms and establish metrics that will maximize the value of their entrepreneurial investment.

FIN7525 Finance for New Ventures
3 Elective CreditsFIN7525 is meant for entrepreneurs and small business owners that want a detailed understanding of the financial implications of strategic decisions as they start and grow their ventures. The focus is on forecasting integrated financial statements, valuation, and deal structure. The course covers equity investment (angels and VCs) from both the entrepreneur's and investor's perspectives, including pre- and post-money value, capitalization tables, dilution, and liquidation preferences. The impact of debt financing on financial statements and returns is also covered. Valuation methods include discounted cash flow, multiples, and the VC method. Risk management techniques incorporating staging, milestones, real options, and simulation are used to better assess uncertainty and then structure transactions to mitigate risk.

Prerequisites: FIN7200 OR FIN7800