Finance Minor

Introduction to the double-entry system of debits and credits, journal entries and general ledger accounts, steps leading up to financial statement preparation and format of financial statements. Also included are studies of merchandising companies and determination of inventory balances and cost of goods sold, and an introduction to the accounting treatment of various assets and liabilities. US accounting standards (GAAP) are contrasted with international standards (IFRS).

An introductory study of the basic principles, instruments, and institutions in the financial marketplace. Topics include the concept of money; the Federal Reserve and the banking system; the provision and management of funds for both the short and long terms; the basic financial instruments; financial characteristics of the firm, including basic balance sheet analysis; the role of the stock and bond markets; interest rates and present value analysis; personal finance issues. Corequisite: EBEN 101 or EBEN 102.

Characteristics and investment strategies related to stocks, bonds, and options. Sources of return and risk are explored. The foundations of financial research are developed with regard to information sources, valuation techniques, computation of return and risk and their relationship. SEC regulations; methods of performance evaluation. Prerequisite: EBFN 101.

Methods of capital budgeting and corporate financial decision-making; valuation techniques, market efficiency, capital structure, dividend policy, Betas, cost of capital, portfolio analysis and the Miller Modigliani principle are incorporated into the analysis; financial analysis under conditions of certainty and uncertainty. Prerequisite: EBFN 101.

An introductory course covering issues relating to the economy as a whole. Topics covered include, but are not limited to, the study of national income and the Gross Domestic Product (GDP), national income determination, investment, consumption and consumption theories; classical economic theories, Keynesianism, monetarism, rational expectations, supply-side economics; the business cycle, inflation, unemployment; money and the money supply, the banking system, the federal reserve system, monetary and fiscal policy, budget deficits and the national debt.

An introductory course covering issues relating to individual economic units: namely, the individual consumer, the individual firm, the individual factors of production—land, labor, and capital. Topics covered include, but are not limited to, price theory, price determination through equilibrium, supply and demand, analysis of consumer demand, utility theory and marginal utility, consumer equilibrium, indifference curve analysis, analysis of supply, theory of production, pricing in perfectly and imperfectly competitive markets, types of imperfect competition, anti-trust laws in the U.S., and distribution of income.

Methods of capital budgeting and corporate financial decision-making; valuation techniques, market efficiency, capital structure, dividend policy, Betas, cost of capital, portfolio analysis and the Miller Modigliani principle are incorporated into the analysis; financial analysis under conditions of certainty and uncertainty. Prerequisite: EBFN 101.

This course provides an examination of Modern Portfolio Theory. It develops fundamental portfolio analysis, portfolio risk and return measures, and the process of optimal portfolio construction. The emphasis will be on building and managing Equity and Fixed Income portfolios. Features of optimal portfolio construction will include domestic as well as international diversification, risk management, hedging, and performance evaluation measured against standard benchmarks. Prerequisite: EBFN 210 Investment Principles.

An integrated capstone course focusing on application of case studies to the nature, functions and activities of actual businesses, analyzing objectives, policies, and performance in relation to the outside environment. Emphasis is placed on ethical aspects of decision making. Case studies are used to develop analytical skills. Knowledge and techniques developed in earlier courses are applied in this course. Prerequisite: Senior standing.

An integrated capstone course focusing on application of case studies to the nature, functions and activities of actual businesses, analyzing objectives, policies, and performance in relation to the outside environment. Emphasis is placed on ethical aspects of decisionmaking. Case studies are used to develop analytical skills. Knowledge and techniques developed in earlier courses are applied in this course. Prerequisite: Senior standing.

The theoretical foundations, institutional details, and practical applications of options trading: various pricing models and their development; in-depth examination of the use of options as speculative, hedging, investment, and arbitrage tools; the role of options with respect to the proper functioning of the modern market economy. The central focus is on stock options. Prerequisite: EBFN 210.

This course will build on previous introduction to fixed income securities (bonds). In the course, we will present and develop the conceptual framework used for; pricing fixed-income securities; fixed-income securities portfolio; hedging; markets and instrument. Bonds basic valuation are reviewed and extended into a detailed examination of the pricing process and yield measurement. The term structure of interest rate is introduced and used in pricing. Volatility and its characteristic, duration and convexity are examined, their implication to the fixed-income security portfolio are analyzed.

Market and instruments are covered too. Among them, treasury, agency, municipal and corporate bond markets. Also discussed are the recently popular CDO markets, such as mortgage-backed securities and other. Lastly, hedging tool and their usage is covered, including, future contracts, options and swaps. Prerequisites: EBFN 210 and MATN 120.