Catalog Version

Winter/Spring/Summer 
2013- 2014

Catalog update:
October 15, 2013

Access archived catalogs in the Catalog Archive section.​​​​​

Students are required to follow the Academic Handbook and Code of Student Responsibility

The concentration teaches a core set of skills in financial modeling, debt and equity issues, valuation, mergers and acquisitions, financial planning, risk management, financial reporting and analysis, and taxation necessary in corporate finance positions as well as in other careers such as consulting.  Students will develop an understanding of a very broad range of financial issues and their effect on firm value and risk.  The various topics covered in this concentration, among others, include analysis of capital investments, intrinsic and relative valuation methods, issues in cost of capital, mergers and acquisitions, real options, payout policy, IPOs and venture capital, agency problems and asymmetric information.  The courses within this concentration make extensive use of cases to illustrate the application of theory to practical problems.

Students undertaking the courses in this concentration will develop skills and a knowledge base to undertake positions in:
 
  • Investment banks and commercial banks;
  • Corporate finance, treasury, and business development positions in Fortune 500, midcap and small-cap companies;
  • Financial consulting, general management consulting, and corporate strategy roles;
  • Financial advisory services such as M&A strategy and advisory, restructuring advisory, debt and capital advisory, restructuring advisory and business modeling; venture capital and private equity firms, and;
  • General management positions.

 

FIN 523

INVESTMENT ANALYSIS

This course provides an introduction to capital markets and financial instruments and emphasizes on security valuation. It is not a course on personal investing. The course builds on Fin 555 and covers relevant aspects of fixed-income markets, asset pricing, portfolio management, equity markets, and derivatives markets. The course provides background material for both Fin 662 (Derivatives Valuation) and Fin 675 (Cases in Investments and Financial Engineering). Prerequisite: FIN 555
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.

FIN 553

ADVANCED CORPORATE FINANCE

This course builds on Fin 555 and focuses on fundamental themes in corporate finance. Topics covered include the analysis of capital investments, valuation methods, cost of capital, real options, agency costs, corporate governance, payout policy, equity issues, hybrid forms of financing, and mergers and acquisitions. The main theme of the course is on valuation and the overall focus is on enhancing enterprise value. The course also uses several case studies to illustrate the application of finance theory to practical problems. Prerequisite: FIN 555
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.

FIN 551

PROBLEMS IN CORPORATE FINANCIAL POLICY

This course enables the student to apply the basic principles of corporate finance learnt in Fin 555 and in Fin 553 to problems in corporate finance with the complexities encountered in practice. Through cases and discussion of topical issues, the course provides the student with an opportunity to analyze practical financial situations and problems. The course requires the student to be familiar with fundamental concepts such as valuation methods (WACC, Free Cash Flow and Capital Cash Flow, APV, Trading and Transaction Multiples), portfolio selection, CAPM, and analysis of capital structure. The course emphasis is sufficiently general so as to be of interest to a wide cross-section of students. At its most fundamental level, the course attempts to improve problem-solving skills that relate to problem definition, gathering and organizing the relevant information, developing feasible alternative courses of action, evaluating alternative choices, and recommending and defending the best course of action. In addition to analyzing specific problems or issues, the course will consider how these issues relate to the strategic objectives of the firm and examine the ?big picture? assumptions that are used in the numerical calculations. Prerequisite: FIN 555. Recommended Strongly : FIN 553
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.

FIN 558

MERGERS AND ACQUISITIONS

The course provides an overview of common corporate restructuring strategies and the economic motives for undertaking them. Topics covered include mergers, acquisitions, friendly and hostile takeovers, financial re-capitalization, leveraged buyouts, management buyouts, going private, convertible securities, tracking-stock, spin-offs, split-ups, carve-outs and reorganization under bankruptcy, liquidation, and out-of-court restructuring. The course integrates corporate governance and agency dimensions, financial and strategic management aspects, and legal and accounting considerations into a unified framework. This framework is then used to investigate issues such as pre-merger planning, fact-finding, accounting and tax implications, anti-trust problems, post-merger integration, and the short-term and long-term shareholder wealth consequences of financial and organizational restructuring transactions. The course examines transactions that significantly affect a corporation?s assets, liabilities, and/or equity claims. Transactions will be examined from the perspectives of both the corporation (e.g. CFO and CEO) and the capital markets (e.g. investors). Common "arbitrage" trading strategies involving corporate transactions will also be discussed. Prerequisite: FIN 555 and FIN 551 or FIN 553. A basic understanding of financial options and pricing is recommended.
Prerequisites:
FIN 555 and (FIN 551 or FIN 553) are a prerequisite for this class.

FIN 798

SPECIAL TOPICS

Content and format of this course are variable. In-depth study of current issues in finance. Subject matter will be indicated in class schedule. Offered variably.