Finance (FI)

FI 299 Experimental Course in Finance     (3 credits)

PREQ: MA 129 or 139, AC 260, FI 270 or GB 301 (CC5 or WP)

Experimental courses explore curriculum development, with specific content intended for evolution into a permanent course. A topic may be offered twice before it becomes a permanent course. Students may repeat experimental courses with a different topic for credit.

FI 305 Principles of Accounting and Finance     (3 credits)

PREQ: GB 212 & MA I & (GB 213 CPR & EC 112 CPR).

This course serves as the gateway to the Finance, Economics & Finance and Corporate Finance & Accounting majors. An overview of financial statements and approaches to financial statement analysis are covered first, followed by the basics of valuation and the management of working capital. Specific topic areas include time value of money, valuation of financial securities, risk and return,estimating the cost of capital, working capital management and financial planning and forecasting.

LSM: QP

FI 306 Financial Markets and Investment     (3 credits)

PREQ: FI 305. Formerly FI 320.

Introduces students to important topics in bond, equity and options markets. To this end, the course focuses on issues surrounding the nature and functioning of these markets and the key models used in valuing securities that are traded on them. Students will enhance their understanding of how these markets operate to establish asset values by engaging in exercises in the Trading Room.

LSM: QP

Note: Formerly: FI 320

FI 307 Advanced Managerial Finance     (3 credits)

PREQ: FI 305. Formerly FI 380.

This course builds on materials covered in FI 305. Topics covered include capital budgeting under uncertainty, capital structure and payout policy, investment banking and public offerings of securities, lease financing and hybrid securities, mergers, acquisitions and other forms of corporate restructuring, bankruptcy and liquidations, and an introduction to derivative securities and corporate risk management. Course pedagogy includes the use of cases to bridge the gap between finance theory and real-world applications.

Note: Formerly: FI 380

FI 312 Advanced Topics in Investments     (3 credits)

PREQ: (FI 320 or FI 306) or IP & (CC7 or WP).

Topics covered include in-depth treatment of modern portfolio theory - attitudes toward risk, derivation of portfolio models, and applications using active and passive approaches. Other topics include bond portfolio strategies, options pricing and financial futures.

FI 315 Equity Ressearch     (3 credits)

PREQ: FI 306

The goal of this course is to develop students’ ability to use financial statement information and related disclosures to evaluate the underlying economics of a firm. Students will study the company’s past and current performance, its strategy, and competitive environment by analyzing and interpreting data from the firm’s 10-K, 10-Q, and earnings call transcripts. Students will then develop an integrated three-statement financial model of the firm in order to forecast the firm’s future performance. These projections become the inputs to the valuation techniques that are studied, which include discounted cash flow models (DCF), residual income models, and relative valuation methods. The course emphasizes the DCF method of valuation, which is used to estimate the intrinsic value of the firm. This approach to firm valuation is referred to as “bottom-up” or “fundamental analysis”. It is associated with investors such as Benjamin Graham, Warren Buffett and Peter Lynch.

FI 318 Real Estate Investment Decisions     (3 credits)

PRE or CO-REQ: (FI 380 or FI 307) or (FI 320 or FI 306).

Acquaints students with the basic concepts and principles of real estate and urban economics that affect real estate investments. Equips students with essential tools needed for comprehensive real estate investment analysis. Emphasizes the financial aspects of real estate, e.g., appraisal, feasibility analysis, and primary and secondary markets of real estate.

FI 325 Operations of Financial Institutions     (3 credits)

PRE or CO-REQ: (FI 380 or FI 307) or (FI 320 or FI 306).

Examines the structure and operation of financial institutions, including commercial banks, thrifts and financial services companies. Covers the techniques used to analyze profitability, liquidity, structure, short-run versus long-run decisions, and the particular difference between small, large, domestic and international banks.

FI 331 Capital Markets     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 380 or FI 307).

Presents the organization and operation of U.S. and international financial markets. Emphasizes factors influencing interest rates, including inflation, risk and term to maturity. Discusses the supply of, and demand for, funds from various economic sectors. Includes the current functioning of money and capital markets as providers of liquidity, short-term credit, long-term investment capital, and assets for hedging against adverse price and interest rate movements. Also discusses foreign exchange and Eurocurrency markets. Topics of current interest included.

FI 333 Seminar in Micro-Lending     (3 credits)

PREQ: FI 320

This course is a reading seminar designed for students who have an interest in micro-lending or micro-enterprises. The course will use journal articles and cases to present and develop the micro-lending issues. Many of the articles and case identification and presentation, as well as the management of the class discussion, will be lead by the students in the class. Students will be expected to do a coordinated research project to learn how other universities, banks, enterprises and governments have become involved in micro-lending programs. This research will study micro-finance from both international and the domestic perspectives, with discussions and coordinated research working toward a final course project developing a recommendation that can be implemented by the students operating the Bentley Microfinance Club and managing the loan fund.

Note: Formery FI 402C

FI 335 Derivatives     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 380 or FI 307).

This course is an intensive introduction to derivatives. The course will enable you to achieve a detailed understanding of the pricing of forwards, futures, swaps and options and an appreciation of their many uses in the real world. The mathematical requirements of the course include very basic statistical methods and a little calculus. The course will stress intuition and practical applications such as trading, capital preservation and risk management strategies. We will use the trading room extensively. Those of you who do well in the course will be well on your way toward understanding the material in the derivatives sections of the three CFA exams.

Note: Formerly FI 402B

FI 345 Applied Corporate Finance     (3 credits)

PREQ: FI 380 or FI 307.

This course provides an advanced analysis of the major issues affecting the financial policy of a modern corporation using a set of case studies. The major issues to be covered are financial statement analysis, the assessment of financing needs, capital budgeting, short-term and long-term financial policy, project evaluation, cost of capital, capital structure and mergers and acquisitions.Our learning method will be intensive case analysis. Student involvement in case discussion is an integral part of the learning process.

Note: Formerly FI 402A

FI 347 Financial Modeling     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 380 or FI 307).

Financial Modeling is an advanced elective focused on applying sophisticated Excel techniques to the most common modeling problems in finance. First, the skill set is expanded to include advanced features of Excel including TVM and statistical functions, array manipulation, text and date usage, regression, conditionals, Boolean operators, data tables and random number generation. Subsequently the course will cover macro recording as well as custom subroutine and function construction in the Visual Basic for Applications (VBA) development environment. All techniques learned will be applied to the most common financial modeling problems of the day including present value, cost of capital, financial statement forecasting, valuation, portfolio theory and options. Lectures will not onlydiscuss the Excel application and relevant financial theory, they will also cover topics such as linear algebra, programming style, enhanced readability, reuse and large-scale deployable model development.

FI 351 International Finance     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 380 or FI 307).

Surveys systematically the theory of international finance, international investing and international business. Areas covered include foreign exchange with emphasis on exchange rate determination, exchange risk, hedging and interest rate arbitrage, international money and capital markets and international financing, multinational capital budgeting and the cost of capital.

Focus: CI

LSM: GP

FI 352 International Project Finance     (3 credits)

PREQ: FI 380 or FI 307. Formerly FI 392.

The course relies on a case-study approach to an increasingly important field that requires excellent financial management skills. We provide an overview of project finance employing the latest techniques for structuring transactions, including risk mitigation by financial intermediaries. Students will be introduced to substantial research data and informational resources. The course stresses decision making and prioritization of tasks, policy formulation, the selection of world-class partners and on-the-ground operational skills necessary to ensure timely completion of construction, budget adherence and efficient start-up. Large investment projects across a variety of geographic regions, industrial sectors, and stages of project execution are examined, including relevant data on default and loss characteristics. We will contrast the important differences in risk between domestic and export sector projects, including management of foreign exchange issues and the role of host gov.

Note: Formerly: FI 392

FI 360 Introduction to Professional Financial Planning     (3 credits)

PRE or CO-REQ: (FI 380 or FI 307) or (FI 320 or FI 306). Formerly FI 340.

Provides an overview of the personal financial planning process, including the establishment of goals and objectives, forecasting of lifetime income and expenditures, evaluation of alternative investments, money management, taxation, and retirement and estate planning. Covers the concepts, theories and analytical methods used in professional financial planning. Investments considered include home ownership, securities, money market funds, investment partnerships, insurance, business ownership, real estate, and retirement programs. Analyzes the effects of inflation, changing interest rates and taxation on these investments. Designed to give an in-depth exposure to financial planning issues to students with a professional interest in the field.

Note: Formerly FI 340

FI 361 Advanced Topics in Financial Planning     (3 credits)

PREQ: FI 360

This course explores the complex issues involved in planning for specialized client circumstances. As a result, the course highlights the effects of marriage, separation, divorce, childbirth, career changes, inheritance, health difficulties, and the retirement or death of household members on financial planning activities. The course work also illustrates actual uses of financial planning tools and a technology in the development of segmented and comprehensive plans to help refine students' research, communication and decision-making abilities.

FI 362 Insurance and Risk Management     (3 credits)

PRE or CO-REQ: (FI 380 or FI 307) or (FI 320 or FI 306). Formerly FI 327.

Studies insurance as an economic and legal relationship dealing with personal and property risks, subjective and objective risks, and insurability. Reviews contract and agency law; insurance coverages including life, health, liability, fire, homeowners and commercial special multiperil policies; Social Security and social insurance; pension plans including IRA accounts; estate planning; and risk management and self-insurance. Surveys the insurance industry, including its structure and regulation.

Note: Formerly FI 327

FI 372 Mergers and Acquisitions     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 380 or FI 307). Formerly FI 402.

Mergers and Acquisitions is an advanced finance course which is designed to examine various aspects of corporate mergers, acquisitions and other changes in control of a company. The course will discuss such matters as the strategy and rationale for such transactions, corporate governance, valuation, structuring, due diligence, private equity and leveraged buyouts and the seller's perspective in a transaction. Other topics will include a discussion of alternatives to mergers and acquisitions such as joint ventures and licensing, as well as a discussion of post-merger integration.

FI 398 Advanced Topics in Financial Planning     (3 credits)

PREQ: FI 320 or FI 306.

This course explores the complex issues involved in planning for specialized client circumstances. As a result, the course highlights the effects of marriage, separation, and divorce, childbirth, career changes, inheritance, health difficulties, and the retirement or death of household members on financial planning activities. The course work also illustrates actual uses of financial planning tools and a technology in the development of segmented and comprehensive plans to help refine students' research, communication, and decision-making abilities.

FI 399 Experimental course in FI     (3 credits)

PREQ: (FI 320 or FI 306) or (FI 307 or FI 380).

Experimental courses explore curriculum development' with specific content intended for evolution into a permanent course. A topic may be offered twice before it becomes a permanent course. Students may repeat experimental courses with a different topic for credit.

FI 401 Directed Study in Finance     (1 to 3 credits)

Permits selected superior students to study special topics. (Allows repetition for credit.).

FI 402 Seminar in Finance (Special Topics)     (2 to 3 credits)

PREQ: FI 320 or FI 306.

Covers a broad range of topics in corporate finance and financial services. The seminars offered under this designation focus on contemporary issues to which financial principles and information technology can be applied.

Note: Not offered regularly. Check with department chair for availability.

FI 421 Internship in Finance     (3 credits)

PREQ: Senior-level standing and at least nine hours of FI courses earned before beginning the internship. May not register on the web. See internship coordinator.

Provides the student with an on-the-job opportunity to apply principles of the finance discipline to a work situation in the business world. Requires the student to work with the faculty advisor to develop a report relating academic course work to the work experience.

Note: Open to superior full-time students, selected by the finance faculty.