The Course Catalog includes course descriptions of all courses offered by the Undergraduate School at Babson College. For descriptions of the courses offered in the current or upcoming semesters, please see the Course Listing.
Undergraduate Course Catalog
FIN2520 - PERSONAL FINANCE
PERSONAL FINANCEFIN2520 Personal Finance 4 credit - general credit 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 financial knowledge other than first-year finance. The course covers topics such as understanding and appreciating the time value of money, the financial planning process, financing the purchase of a house and other consumer loans, saving for retirement and other goals, selecting a financial advisor, taxes, estate planning, behavioral finance and common investment scams. Specific investment products studied include mutual funds, exchange-traded funds, municipal bonds, 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 will work to develop a personal financial plan. Prereqjuisite: SME2021
FIN3511 - RESIDENTIAL REAL ESTATE
RESIDENTIAL REAL ESTATEFIN3511: Residential Real Estate 4 general elective credits This course is designed to introduce students to the residential real estate housing market in the U.S. and equip them with the knowledge to efficiently and effectively navigate that marketplace. Through a practical application of the course topics and examination of current industry examples, we will explore the process of buying, selling, financing and leasing residential real estate, with a focus on single-family homes, condominiums, townhomes, duplexes, triplexes and multi-family apartments of four units or less. We will examine the major issues and considerations that impact the valuation, financing, acquisition, disposition, and leasing of residential real estate. Prerequisites: FME1001
FIN3512 - REAL ESTATE TRANSACTIONS AND LAW
REAL ESTATE TRANSACTIONS AND LAW
FIN3512: Real Estate Transactions and Law
4 general elective credits
Real-estate is a transaction based business. To successfully execute any business strategy in real estate, it is essential to understand the relevant legal structures and transaction documentation. This introductory and practical course will provide students with an understanding of the fundamentals of commercial real estate transactions from a legal and managerial perspective. The course is designed to familiarize students with the various "life stages" of commercial real estate transactions: negotiating the term sheet, conducting "due diligence" property investigations, structuring ownership interests, financing the project, closing and acquiring title, developing the property, managing and leasing the project, and ultimately, selling the asset or ownership interests. By integrating business strategy and legal structure throughout the course, students will explore how legal considerations impact decision-making in valuing real estate assets, selecting effective ownership structure and control, managing financial risk, allocating financial returns, and developing exit strategies for real estate investments
FIN3515 - CORPORATE FINANCIAL MANAGEMENT
CORPORATE FINANCIAL MANAGEMENTFIN3515 Corporate Financial Management (General Elective) This course is designed for students interested in corporate financial management. Its principal goals are to provide the concepts and techniques required to make long-term investment and financing decisions within the firm. At the end of the course, students will be able to make real asset investment decisions by valuing a proposed investment project or acquisition. Students will also be able to qualitatively and quantitatively assess the appropriateness of a firm's financing policy. Topics covered include alternative valuation methods, estimating cost of capital, real options, capital structure, and corporate payout policy. Recommended: ACC3502 Prerequisite: SME2021
FIN3520 - SECURITY VALUATION
SECURITY VALUATIONFIN3520 Security Valuation (General Elective) This course is designed for students interested in investment banking, fixed-income valuation or equity analysis. Students develop tools and techniques for the valuation of different securities. Topics covered include: bond pricing, bond duration, the term-structure of interest rates, financial statement analysis, equity valuation models, and firm valuation. A major focus of this class is the valuation of specific firms and securities using finance theory and applications. Recommended: ACC3502 Prerequisite: SME2021
FIN3522 - BEHAVIORAL FINANCE
BEHAVIORAL FINANCEFIN3522 Behavioral Finance: Efficient Markets Meet Human Behavior 2 credit (general credit) For many decades, finance theory and practice has relied on two ideas: individuals are rational and markets are efficient, in spite of events and actions that did not seem rational or efficient. In this course we will examine how individuals and firms make financial decisions, and how those decisions may deviate from those predicted by traditional financial theory. We will explore psychological biases in financial decision making, and examine the impacts these biases have on financial markets and financial decision making. In addition, we will examine how the insights from behavioral finance complement the traditional finance paradigm of efficient markets populated by rational participants. This course counts as 2 credits towards the 16 credit minimum for the finance concentration requirement. Prerequisite: SME2021
FIN3535 - FINANCING AND VALUING SUSTAINABILITY
FINANCING AND VALUING SUSTAINABILITYFIN3535 Financing and Valuing Sustainability 4 general credits This course will examine the intersection of sustainability, corporate social responsibility and socially responsible investing with the traditional theories and tools of finance. Students will learn to describe the sustainability landscape and then analyze sustainable technologies, strategies, and business models from the perspective of managers, entrepreneurs, and investors. Basic financial tools such as discounted cash flow, capital budgeting, capital structure, and risk/return will be used to evaluate the feasibility and financial implications of sustainable products and practices in a variety of industries and applications. Students will learn how to balance the needs of all stakeholders in organizations to create both financial and social value. Prerequisites: SME2021 Finance
FIN3555 - REAL ESTATE INVESTMENT
REAL ESTATE INVESTMENTFIN3555 Real Estate Investment (General Elective) This course is designed for students interested in learning to evaluate real estate investment opportunities. The focus is on commercial property, not single-family homes, and on U.S. real estate. Using readings and case studies, students examine real estate as an asset class and explore its similarities and differences from other investment types.The foundation for this course involves understanding the industry terminology, legal rights and restrictions, and basic techiques for financial projections and analysis. Expanding from this base, students explore the use of debt and the implications of taxes on real estate investment returns. Prerequisite: SME2021
FIN3560 - FINANCIAL MARKETS AND INSTRUMENTS
FINANCIAL MARKETS AND INSTRUMENTSFIN3560 Financial Markets and Instruments (General Elective) This course provides the student an understanding of the role the financial markets can play in managing the firm. The topics covered include the major financial markets and their associated structures, quantitative techniques for valuing various financial securities and their cash flow streams, and factors affecting interest rates. This course also provides an introduction to derivatives and risk management. Topics include: instruments/markets, issuing securities, organized exchanges vs. OTC, stock valuation, bond valuation, cost of equity capital, interest rate determination (term structure), risk management, an introduction to derivatives, pay off profiles, binomial option pricing techniques, and an introduction to Black-Scholes. Prerequisite: SME2021
FIN3565 - REAL ESTATE DEVELOPMENT
REAL ESTATE DEVELOPMENTFIN3565 Real Estate Development (General Credit) This course reviews the process by which value is created through real property improvement and modification. The course examines that real estate development process, exposing students to the critical steps and key decisions required to create, secure approvals, construct, lease, finance, and manage property improvements. Through case studies, related readings, and a final team project, students examine the perceived risks and potential returns of real estate development. Prerequisite: FIN3555 This course is typically offered in the following semester: Fall
FIN4505 - FINANCIAL TRADING STRAT AND RISK MGT
FINANCIAL TRADING STRAT AND RISK MGT
FIN4505 Financial Trading Strategies and Risk Management
4 credit (general credit)
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.
FIN4506 - IMPACT INVESTING
FIN4506: Impact Investing
4 advanced management credits
Impact investing is commonly defined as intentionally investing to generate measurable social or environmental outcomes in addition to financial returns. As the number of impact investors and assets under management has grown exponentially, the range of strategies and outcomes is also growing. This course aims to provide students with an overview of common impact investment strategies across asset classes, including venture capital, private credit, public equities, and real assets.
As an experiential learning course, students will have the opportunity to independently identify, evaluate, and recommend an impact investment for a particular social or environmental problem. By going through the full investment process, students will learn how professional impact investors navigate the challenges of generating financial and social returns.
In order to accelerate the knowledge base required to make an impact investment, students will be expected to complete a number of assigned readings, including HBS case studies, academic research papers, and websites authored by practitioners in the field. The course will also include several in-class exercises where students practice skills, such as impact assessment and measurement.
Students will also gain an understanding of the impact investment industry, including notable institutions, career paths, challenges and opportunities facing practitioners, and trends. It is thus suitable both for students exploring careers in impact investing as well as those wanting to understand how they can be impactful within traditional financial institutions. Entrepreneurs with business ideas that may be interesting for impact investors would also benefit from the course.
FIN4510 - CORPORATE FINANCIAL MODELING & DECISION TOOLS
CORPORATE FINANCIAL MODELING & DECISION TOOLS
Corporate Finance Modeling and Decision Tools
This course is designed to provide a practical application of corporate finance skills to a variety of analyses commonly performed by investment bank and commercial bank financial analysts. Mergers and acquisitions, initial public offerings, private equity placements, senior and mezzanine debt issuances, leveraged buyouts, and other common financial transactions will be covered. We will explore the process of each transaction and place heavy emphasis on the role of the financial analyst in analyzing each situation. Students will gather source data, and build and apply models typically used in practice by investment banks, commercial banks, and corporate finance consultants. The course is designed for those interested in careers in investment banking, commercial banking, corporate finance consulting, and strategic planning.