The Course Catalog includes course descriptions of all courses offered by F. W. Olin Graduate School of Business. For descriptions of the courses offered in the current or upcoming semesters, please see our Course Listing.
Graduate Course Catalog
FIN6110 - FINANCE FOR ENTREPRENEURS
FINANCE FOR ENTREPRENEURSFinance 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.
FIN6200 - FINANCIAL DATA ANALYSIS AND PRACTICE
FINANCIAL DATA ANALYSIS AND PRACTICE
FIN6200 Financial Data Analysis and Practice
This course trains students how to use different data sets for research, how to develop appropriate financial memos and reports for various audiences, and provides some introduction to different aspects of the finance profession. At least four different datasets such as (but not limited to) CRSP, Compustat, Bloomberg, and Capital IQ will be introduced. Students will learn how to access and download data, analyze the data, create reports, and provide written and oral reports to different financial and non-financial audiences. In addition, students will be made aware of professional practices and standards in different financial professions to prepare students for rapid entry into the workplace.
FIN6201 - FINANCIAL DATA ANALYSIS & PRACTICE
FINANCIAL DATA ANALYSIS & PRACTICEFinancial Data Analysis and Practice This yearlong course trains students how to use data sets for research, how to develop appropriate financial memos and reports for various audiences, and provides some introduction to different aspects of the finance profession. At least four datasets such as (but not limited to) CRSP, Compustat, Bloomberg, and Capital IQ will be introduced. Students will learn how to access and download data, analyze the data, create reports, and provide written and oral reports to financial and nonfinancial audiences. In addition, students will be made aware of professional practices and standards in financial professions to prepare students for rapid entry into the workplace.
FIN7200 - INTRODUCTION TO FINANCIAL MANAGEMENT
INTRODUCTION TO FINANCIAL MANAGEMENTFIN7200 Introduction to Financial Management Introduction to Financial Management (FIN) This course introduces the managerial finance skills required of effective business managers operating in all functional areas of an organization as they seek to create shareholder value. Covers basic corporate finance topics including financial analysis, construction of pro forma financial statements and forecasting cash flows, the relationship between risk and return, the cost of capital, discounting future cash flows, assessing the viability of projects and capital budgeting, financing and capital structure issues, and the valuation of stock, bonds, firms and other entities.
FIN7502 - CAPITAL MARKETS
FIN 7502 - CAPITAL MARKETS
3 elective credits
This 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.
Prerequisite: FIN7200 or FIN7800 or MSF Program
FIN7503 - EQUITIES
EQUITIESFIN 7503 EQUITIES 3 credit elective This 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. Prerequisite: FIN7200 or FIN7800 or MSF program.
FIN7504 - RISK MANAGEMENT
RISK MANAGEMENTFIN7504 Risk Management (formerly Managing Financial and Corporate Risk) 3 credit elective Risk management of modern corporations has risen to a new pre-eminence in industrial and financial firms. The reasons for this rise, and the techniques and instruments used by risk managers, are the subjects of this course. The course first considers the mechanics and the economic intuition behind the basic tools of financial risk management: forwards, futures, swaps, and options. Students will then use their knowledge to build synthetic securities, to exploit arbitrage opportunities, and to alter the risk/return characteristics of corporations. We then apply these tools to risk management problems of firms in industries such as energy (oil and natural gas), chemicals, financial services (banks and securities firms), and commodities (gold), and pharmaceuticals (intellectual capital.) Prerequisite: FIN7200 or FIN7800 This course is typically offered in the Spring
FIN7511 - CORPORATE FINANCE: RAISING CAPITAL
CORPORATE FINANCE: RAISING CAPITALFIN 7511 Corporate Finance: Raising Capital (Formerly _Financing the Firm_) 3 credit elective This course is designed to help students develop analytical tools and skills to build financing strategies and manage the right hand side of the balance sheet. It explores the theoretical and practical issues of capital structure design, considers firm financing alternatives, including equity, long-term debt, hybrid securities, leasing, securitization, project finance, and examines the process through which securities are issued. The course also explores share repurchase, dividend policy, and risk management. Prerequisite: FIN7200 or FIN7800 This course is typically offered in Fall and Spring.
FIN7513 - FIXED INCOME
FIN 7513 Fixed Income (Formerly _Fixed Income Portfolio Management_)
3 credit elective
This advanced quantitative course is designed for students interested in fixed income portfolio management, as well as students interested in the sales and trading of fixed income securities and their related structured products. Topics covered include: (i) bond pricing and day count conventions; (ii) relative value and yield curve construction; (iii) duration, basis point value, and convexity; (iv) pricing and hedging of interest rate currency swaps; (v) Treasury bond futures, conversion factors, and the concepts of cheapest-to-deliver and implied repo; (vi) the repo (GC and special) market; (vii) credit risk and the pricing of high yield bonds and credit default swaps; and (viii) securitization, mortgage-backed securities, and collateralized mortgage obligations.
Prerequisite: FIN7200 OR FIN7800
This course is typically offered in the Fall.
FIN7516 - CORPORATE FINANCE: EVALUATING OPPORTUNITIES
CORPORATE FINANCE: EVALUATING OPPORTUNITIES
Corporate Finance: Evaluating Opportunities (Formerly _Strategic Corporate Investment_)
3 credit elective
Students registering for this course may not have already taken FIN7506 Financial Tools for Business Managers. Credit will not be granted for both courses.
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.
Prerequisite: FIN7200 or FIN7800
This course is typically offered in Fall and Spring.
FIN7518 - MANAGING PORTFOLIOS
FIN7518 Managing Portfolios
3 credit elective
Managing Portfolios is designed for students interested in investment management, portfolio
management, and/or risk management. The course will augment and extend students' basic finance skills, tools and concepts learned in core finance courses and in other courses in the Investments concentration curriculum. In the context of a variety of individual and institutional investor types, from high net worth individuals to endowments, students will explore the simultaneous management of positions in multiple securities using heuristic, statistical and other mathematical tools. Topics covered include client assessment, investment objective setting, investment strategy formulation, security selection, allocation of risky assets, optimal portfolio selection, and the use of derivatives to meet investment objectives. Through projects and readings, students will explore these topics in portfolio theory and practice. Tools and theories used widely by portfolio management professionals are fundamental to this course. In addition to the traditional course work, the students will study and prepare investment proposals, periodic client communications and conduct portfolio performance evaluations.
This course is typically offered in the Spring
Prerequisites: FIN7200 or FIN7800
FIN7519 - PERSONAL FINANCIAL MANAGEMENT
PERSONAL FINANCIAL MANAGEMENTFIN7519 Personal Financial Management 3 Credit Elective This course teaches students to negotiate the retail financial landscape, emphasizing issues that have a large impact on their future financial well-being. It assumes no finance knowledge other than first-year finance. The course covers topics such as selecting a financial adviser, financing the purchase of a house, college saving, retirement saving, behavioral finance, trusts, and investment frauds and scams. Specific investment products studied include mutual funds, exchange-traded funds, municipal bonds, emerging markets, alternative investments (including hedge funds, private equity funds, and commodities), annuities, and insurance products. Consideration will be given to the problem of an entrepreneur or start-up employee who has a substantial fraction of personal wealth invested in a single business venture, including evaluating stock- and option-based compensation plans. Over the duration of the course, students may work to develop a personal financial plan for themselves, or if they prefer, for a fictional person with a defined set of financial traits. Prerequisite: None but it is recommenced that students take FIN7200 or FIN7800 first This course is typically offered in the Fall.
FIN7525 - FINANCE FOR NEW VENTURES
FINANCE FOR NEW VENTURESFIN7525 Finance for New Ventures 3 credit elective FIN7525 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. Prerequisite: FIN7200 OR FIN7800
FIN7527 - REAL ESTATE FINANCIAL MODELING
REAL ESTATE FINANCIAL MODELING
FIN7527: Real Estate Financial Modeling
3 Elective credit
This course will address the practical and theoretical issues involved in estimating cash flows and values of a wide variety real property, financial interests, investment interests and deal structures using discounted cash flow (DCF) techniques and sensitivity analyses. Students will solve real estate cash flow and DCF problems using models for property, portfolio, debt and equity interests for a variety of commercial real estate property types. Students will detailed modeling applications necessary to estimate both cash flows and values in the world of real estate finance and capital markets. Students will use and learn both Excel and industry standard software applications in the process of modelling lease by lease cash flows at the property level, portfolio cash flow consolidations, related debt structures, including first mortgage and mezzanine debt, and equity waterfall structures. This course includes explanation of the theoretical issues and concepts involved in these practical applications. This course is intended for students who have an interest in real estate or who desire to expand their knowledge of finance to include real estate.
Prerequisite: FIN7200 or FIN7800 or students enrolled in the MSF
FIN7545 - FINANCIAL TRADING STRATEGIES
FINANCIAL TRADING STRATEGIES
FIN7545 Financial Trading Strategies
3 credit elective
In this course, students learn to develop and implement institutional (firm-level) financial trading strategies. These strategies are guided by quantitative models that identify, quantify, and manage risks and expected return. In so doing, students learn how to make decisions in an uncertain environment. The course is based on an experiential learning approach, in which trading simulation software provides a platform for delivering learning-by-doing cases. Specific cases covered in the course include: agency trading; principal (liability) trading; algorithmic market making; managing risk capital with value-at-risk; transportation, storage, and production arbitrage in commodity futures markets; and agricultural hedging. The course also covers fundamental concepts in market microstructure, such as bid-ask spreads, price discovery, information asymmetry, liquidity, and inventory risk.