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Finance
The Masters in Finance
Requirements
Program of Study
Course Descriptions
The Masters in Finance
The concentration in Finance offers courses relating to the financial organization, operations, and problems
of the economy at large and stressing issues of financial management in business firms, financial institutions,
and units of government. While some attention is given to the descriptive, institutional, and historical aspects
of the field, primary emphasis is placed on the analytical foundations of the discipline, making extensive use
of the relevant techniques of economic analysis, mathematics, and statistics. By stressing theory and methods of
analysis, the program provides the student with the tools for dealing with important practical issues.
The program is designed for graduates who have entered their professional careers with positions in financial departments
of general businesses, investment banking firms, broker-dealer firms, management consulting firms, various departments
of commercial banks and other financial institutions, central banks, and international financial institutions.
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Requirements
Core Courses
All Master's students majoring in Finance are required to complete the following courses as part of the finance
core requirements:
Foundation and Orientation Requirements (no credit course )
Before registration in any graduate course in the master's program, all students must successfully complete
the Pre-Program Registration course in accounting, microeconomics and statistics. The Pre-Program Registration
course is offered every semester , including summers, to all incoming MBA students.
Core Requirements
ACC6626 Financial Accounting
FIN6601 Financial Analysis
FIN6602 Macroeconomic Analysis and Public Policy
STA6621 Statistical Analysis for Management
MAN6621Management of People at Work
MKT6621 Marketing Management: Program Design
Major Requirements
- A) Finance Courses
- Four courses in finance
B) Specialization
Two courses for each of the following specializations:
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Specializations
Corporate Finance
Courses in financial management seek to provide an understanding of the analytical framework underlying business
financial decisions. While the program is oriented to the financial management of the corporation, much of the
material is applicable to other organizations as well. The courses in this area cover the theory and practice of
business asset management, budgeting, choice of capital structure, optimization problems, and the wider economic
and social implications of financial management decisions. Central courses in this program include:
- FIN6601 Financial Analysis
FIN7726 Corporation Finance
FIN7731 Multinational Corporate Finance.
FIN7738 Funding Investments
These courses can be supplemented by related courses in other specialized areas of finance that serve the student's
needs and interests; relevant courses in accounting are also advised.
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Investment Management
The courses in the investment management program analyze the functioning of security markets and provide the back
ground and techniques for the valuation of securities and the management and control of portfolios of financial
assets. Central courses in this program include:
- FIN7717 Speculative Markets
FIN7720 Investment Management
FIN7725 Fixed Income Securities
FIN7728 Security Analysis
FIN7738 Funding Investments
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Banking and Financial Institutions
Courses in this area are designed to develop an understanding of financial institutions and financial markets and
their relationship to public policies and management policies. Included are studies of market structure, profit
strategies, relationship of commercial banks and other financial institutions, problems of asset and liability
management, and the theory of interest and asset prices. Central courses in this program include:
- FIN7715 Theory and Structure of Financial Markets
FIN7723 Commercial Bank Management
FIN7725 Fixed Income Securities
FIN7732 International Banking
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International Finance
Courses in international finance are designed both to extend the principles of finance to an international setting
and to explore the issues peculiar to conducting business in an integrated world economy. Principal courses in
this specialization include:
- FIN7719 International Finance
FIN7731 Multinational Corporate Finance
FIN7732 International Banking
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Program of Study
The MBA in Finance requires a minimum of twelve graduate level courses, of which four at most can be transferred
from relevant graduate courses at other schools or universities.
The course requirements are as follows:
|
Type
|
No of Courses
|
| Core Course |
6
|
| Concentration Courses |
4
|
| Specialization Courses |
2
|
| Total |
12
|
|
Thesis Option
|
The thesis carries six (6) semester credits and will be considered in lieu of the two (2) concentration
course requirement |
BUonline's MBA is a two year program. The first year is dedicated to completing the core requirements curriculum,
which exposes the student to a breadth of subjects and approaches, that provide fundamental business skills, knowledge,
and perspectives. Students are required to complete the core requirements before taking courses in their specified
major.
During the second-year students build upon the foundation of the core curriculum as they develop expertise in
their chosen fields. Also students can gain deeper insight into a specific field or explore new disciplines through
elective courses available at BUonline's Graduate Studies.
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Courses Descriptions
Core Courses
ACC6620 Financial Accounting
The role of accounting is the accumulation, analysis, and presentation of relevant financial data of an enterprise
to serve the needs of decision makers. The provision of multiple-purpose information to serve the needs of interested
parties outside the firm's management is referred to as financial accounting. The objective of this course is to
introduce the student to the basic concepts, standards, and practices of financial reporting.
The course is devoted to the basic financial statements, the analysis and recording of transactions, and the underlying
concepts and procedures. In addition, a more detailed study of some aspects of financial accounting that have widespread
significance is undertaken, such as inventories, long-term productive assets, bonds and other liabilities, stockholders
equity, and the statement of changes in financial position.
ACC6621 Financial Accounting
The intended audience for this course is students with prior knowledge of financial accounting who understand:
(1) the recording of economic transactions in the accounting records; (2) the basic financial statements that summarize
a firm's economic transactions (the balance sheet, the income statement and the statement of cash flows) and (3)
the fundamental concepts needed to prepare or understand published financial statements (e.g. use of accrual accounting).
Exploiting prior knowledge.
ACC6622 Fundamentals of Managerial Accounting
This course emphasizes the use of accounting information for internal planning and control purposes. This orientation
contrasts with financial accounting where the focus is on accounting disclosures for parties external to the firm.
This course is intended as an introduction for individuals who will make business decisions and evaluate the performance
of business units using data obtained from the accounting system. The course will cover the basic vocabulary and
mechanics of cost accounting, basic issues involved in the design of a cost accounting system, and the role of
management accounting in decisions concerning resource allocation and performance evaluation.
FIN6601 Financial Analysis
This course serves as an introduction to business finance (corporate financial management and investments)
for both non-majors and majors preparing for upper-level course work. The primary objective is to provide a framework,
concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory.
The approach is rigorous and analytical. Topics covered include discounted cash flow techniques; corporate capital
budgeting and valuation; investment decisions under uncertainty; capital asset pricing; options and market efficiency.
The course will also analyze corporate financial policy, including capital structure, cost of capital, dividend
policy, and related issues.
FIN6602
Macroeconomic Analysis and Public Policy
This course is required of all students except those who, having prior training in macroeconomics, money and
banking, and stabilization policy at an intermediate or advanced level, can obtain a waiver either by credentials
or by passing an examination. The purpose of this course is to train the student to think systematically about
the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment
within which business and financial decisions are made. The course emphasizes the use of economic theory to understand
the workings of financial markets and the operation and impact of government policies. Specifically, the course
studies the determinants of the level of national income, employment, investment, interest rates, the supply of
money, inflation, exchange rates, and the formulation and operation of stabilization policies.
FIN6621 Financial Analysis
This course is intended for people with prior knowledge of financial analysis or with strong analytical backgrounds.
The course forms the foundation for subsequent courses in corporate finance, security analysis, investments, and
speculative markets. Its purpose is to develop a framework for analyzing a firm's investment and financing decisions.
The course will provide an introduction to capital budgeting techniques under uncertainty, asset valuation, the
operation and efficiency of capital markets, and the optimal capital structure of the firm.
MAN6621 Management of People at Work
Work is a dominant theme in the lives of most people. The way people are managed at work affects the quality
of their lives as individuals, the effectiveness of organizations, and the competitiveness of nations. The material
in this course develops some of the basic themes associated with managing people. In many cases, these themes make
use of basic concepts that transcend the work place, such as the psychology of individual behavior or of work groups.
The basic issues associated with managing employees include issues associated with motivation and job satisfaction,
the design of jobs and employee empowerment, group behavior and teamwork (including arrangements such as quality
of work life programs), and leadership. The course concludes with a discussion of alternative models or systems
of managing employees -- for example, the dominant Japanese employment system as contrasted with traditional practices.
MAN6652
Foundations of Leadership and Teamwork
Only first-year MBAs are permitted to take this course. Its main goal is to enhance one's capacity to lead
effectively and responsibly in getting things done with others in the contemporary global business environment.
Class sessions are highly interactive and action learning is emphasized. Learning teams of five or six students,
which work on projects in this and other courses throughout the core curriculum, are developed in this course.
Individuals and teams learn through a variety of methods, including peer and team feedback.
MAN6653 Field Application Project
The course is intended to help students frame unstructured business problems. Student teams must identify what
the central issues are and determine the most appropriate tools and concepts from the core curriculum to apply
in order to provide insight into these issues. This approach helps develop a cross-functional approach to business
issues. As part of the course, there is also a module to enhance the students' communications skills.
MAN6654 Competitive Strategy
This course focuses on the competitive strategy of the firm, examining issues central to its long- and short-term
competitive position. Students are placed in the role of key decision makers and asked to address questions related
to the creation or reinforcement of competitive advantage. The initial focus is on industry analysis and competitive
advantage as it derives from the firm's strategic investments. We then focus on the development of firm-specific
capabilities that contribute to competitive advantage. The process through which strategic decisions are made is
then examined. We then address the logic of resource allocation in the diversified firm to enhance competitive
advantage in each market. We discuss the role of organizational coalitions in influencing resource allocation in
the firm.
MAN6655 Global Strategic Management
This course is an introductory course on the strategic management of multinational corporations (MNCs), focusing
on the creation of competitive advantage in a global context. It examines three levels of analysis: trends in the
competitive environment in which MNCs operate, changing ways MNCs organize and conduct global operations, and the
changing roles of MNC management. The course also introduces examples of operating challenges facing MNCs. Some
of these challenges have included strategic alliances, regional and country management, and competition from emerging
economies.
MKT6621 Marketing Management: Program Design
This course addresses the management challenge of designing and implementing the best combination of marketing
variables to carry out a firm's strategy in its target markets. Specifically, this course seeks to develop the
student's skills in applying the analytic perspectives, decision tools, and concepts of marketing to such decisions
as product offering (including the breadth of product line, features, quality level, and customer service), communications
programs (with an emphasis on advertising, sales promotion, and the sales force), distribution channels (the role
of distributors, retailers, and other intermediaries), and pricing to capture the value created for the customer.
The student's basic objective is to develop his/her own understanding and management skills in this critical aspect
of general management. The instructors' primary objective is to stimulate and guide this process. The course uses
lectures and case discussions, two group case write-ups and a case analysis final examination to achieve these
joint objectives.
MKT6622 Marketing Management: Strategy
In common with Marketing 621, the primary objective of this course is to introduce you to the concepts and
theories underlying marketing decision making. Marketing 6622 builds upon Marketing6621 with a stronger emphasis
on the strategic considerations that drive and integrate the decisions made for each element of the marketing mix.
Principal topics include resource allocation, market entry/exit decisions, and competitive analysis. In addition
to a mix of cases and lectures, the course relies on a comprehensive computer simulation game that helps highlight
these issues and provides the class with a rich set of realistic examples for discussion and analysis. This game
allows students to appreciate the real power and value of marketing concepts, develop a disciplined approach to
the analysis of marketing situations, and to further enhance their abilities to communicate and interact with peers
in solving problems.
STA6621 Statistical Analysis for Management
This course considers the use of two key statistical methodologies: regression analysis and experimentation.
Regression analysis is a ubiquitous tool that permeates most of applied statistics. This course considers the application
of regression in various contexts. The use of regression diagnostics and various graphical displays supplements
the basic numerical summaries and provides insight into the validity of the modeling approach.
The coverage of experimentation introduces the notion of a statistical experiment. It is shown how a manager can
design an experiment that will yield reliable, appropriate answers to various business questions, such as how to
combine factors to produce the highest quality manufacturing scheme. The course also introduces the statistical
methods used in the analysis of data from experiments. These methods, collectively known as the analysis of variance,
provide an important addition to the standard suite of regression techniques.
Specific important topics covered include least squares estimation, residuals and outliers, tests and confidence
intervals, correlation and autocorrelation,
co linearity, and randomization. The presentation relies upon computer
software for most of the needed calculations, and the resulting style focuses on construction of models, interpretation
of results, and critical evaluation of assumptions.
Concentration Courses
FIN7715
Theory and Structure of Financial Markets
This course is an overview of the capital markets for students who wish a broad perspective. It is most appropriate
for students who have not had extensive experience on exchanges or in investment banking. The course begins with
a discussion of the functions performed by the capital market. It then moves into the determination of the price
of credit, i.e., the interest rate. Next, it develops the methodology used to value financial instruments that
are actively traded. The course moves to a survey of the asset markets. It ends with an analysis of how institutions
use these markets to manage, absorb and control the risk they face.
Requirements: Midterm, final exam, and problem sets.
Prerequisites:FIN6601 or FIN6621, and STA6621
FIN7717
Speculative Markets
The purpose of this course is to provide the student with the necessary skills to value and to employ options,
futures, and related financial contracts. In order to provide a useful treatment of these topics in an environment
that is changing rather rapidly, it is necessary to stress the fundamentals and to explore the topics at a technical
level. The topics that will be covered include the valuation of futures contracts on stock indices, on commodities
and Government instruments; the valuation of options; empirical evidence; strategies with respect to these assets;
dynamic asset allocation strategies, of which portfolio insurance is an example; swaps; and the use (and misuse)
of derivatives in the context of corporate applications. One-third of the course will be devoted to futures, a
third to options, and a third to their applications. Many of the applications will be sprinkled along with the
coverage of futures and options.
Format: Primarily lecture.
Requirements: Varies by instructor. May include midterm and final exam, homework assignments, and small
group projects.
Prerequisites: FIN6601 or FIN6621, STA6621 (these courses may not be taken concurrently).
FIN7719
International Finance
This is a course on international financial markets and exchange rates. Topics include pricing in the foreign
currency and Eurocurrency markets, use of forward exchange for hedging, short-term returns and market efficiency
in the international money markets, foreign currency options, international capital asset pricing, pricing of foreign
currency bonds, currency swaps, Eurocurrency syndicated loans, foreign currency financing and exposure management.
Format: Lectures and problem sets.
Requirements: Midterm and final exam. Problem sets and case studies.
Prerequisites: FIN6601 or FIN6621, FIN6602. (FIN6601 may not be taken concurrently.)
FIN7720
Investment Management
This course is designed to acquaint the student with the concepts of portfolio analysis in the general area
of institutional investment management. The course discusses principles for managing investment assets that include
equity and fixed-income securities. These principles apply, for example, to managing corporate pension funds, bank-administered
trusts, and other institutional funds. Students will learn how to establish appropriate investment objectives,
develop optimal portfolio strategies, estimate risk-return tradeoffs, and evaluate investment performance. Many
of the latest quantitative approaches are discussed.
Format: Lectures with discussion.
Requirements: Midterm exam, final exam, homework and projects.
Prerequisites: FIN6601 or FIN6621, STA6621.
FIN7721
Real Estate Investment: Analysis and Financing
This course provides a broad introduction to real estate with a focus on financing issues. Basic project evaluation,
financing strategies, and capital markets issues related to real estate are covered. No prior knowledge of the
industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets.
The course contains three cases that help students evaluate the impact of more complex financing and capital markets
tools used in real estate.
Format: Standard lecture with discussion encouraged.
Requirements: Optional midterm, mandatory comprehensive final exam, and case studies.
Prerequisite: FIN6601 or FIN6621.
FIN7723
Commercial Bank Management
When a corporation seeks to raise resources to finance investment, it can issue securities such as bonds or
equities, or, alternatively, it can borrow from a bank. These two methods of raising capital are not identical.
This course focuses on the role of banks in corporation finance and the special nature of bank loans. A key implication
of the uniqueness of bank lending is that bank loans tend to be less liquid than bonds and equities. The illiquidity
of bank loans creates important problems for banks including credit risk analysis, loan pricing, interest-rate
risk management and the regulation of banks. The course covers these topics and concludes with recent developments,
including industry consolidation, non-bank competition and expansion of bank powers.
Format: Lecture.
Requirements: Midterm, final exam, and ten group problem sets.
Prerequisites: FIN6601 or FIN6621, FIN6602.
FIN7724
Urban Real Estate Economics
This course uses microeconomic theory to analyze the determinants of metropolitan real estate values and the
demand and supply of real estate. The course analyzes location decisions of households and firms, land utilization,
urban growth, and the impact of government policies on urban development and real estate values. A market analysis
project, using actual portfolio data, is required along with a midterm and final exam.
Format: Lecture.
Requirements: Midterm, market analysis project and final exam.
FIN7725
Fixed Income Securities
This is a rigorous study of fixed income securities, including default-free bonds, floating rate notes, and
corporate bonds. Closely related financial instruments such as forwards and futures on fixed income securities,
bond options, and interest rate swaps are also examined. In addition to analyzing specific types of fixed income
securities, there will be an examination of the tools used in bond portfolio management.
Format: Lectures.
Requirements: Varies by instructor. May include one or two midterms, final exam, and problem sets.
Prerequisites: FIN6601 or FIN6621, STA6621
FIN7726
Corporation Finance
The objective of this course is to study the major decision-making areas of managerial finance and some selected
topics in financial theory. The course reviews the theory and empirical evidence related to the investment and
financing policies of the firm and attempts to develop decision-making ability in these areas. This course serves
as a complement and supplement to FIN6601, Financial Analysis. Some areas of financial management not covered in
FIN 6601 are covered in FIN7726. These include leasing, mergers and acquisitions, corporate reorganizations, financial
planning and working capital management, and some other selected topics. Other areas that are covered in FIN6601
are covered more in depth and more rigorously in FIN7726. These include investment decision making under uncertainty,
cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend
policy.
Format: Lectures, case discussions, student presentations, debates, and some guest lecturers, depending
upon the instructor.
Requirements: Written assignments, exams, student presentations, and papers.
Prerequisite: FIN6601 or FIN6621.
FIN7728
Security Analysis
The focus of this course is on the valuation of companies. Topics discussed include discounted cash flow techniques
and valuation using alternative valuation techniques such as price multiples. Emphasis is on developing the required
information for valuation from financial statements and other information sources.
Format: Lecture and discussion of cases and projects.
Requirements: Midterm, cases, and projects. Final exam may vary with instructor.
Prerequisites: Minimum of normal first-year courses in accounting, economics, and statistics, and FIN6601
or FIN6621. (Further coursework in financial accounting such as ACC7742 is very useful.)
FIN7730
Urban Fiscal Policy
Description: See Pubic Policy and Management PPMT7773
FIN7731
Multinational Corporate Finance
This course analyzes financial problems corporations face that result from operating in an international environment.
Major topics covered are corporate strategy and the decision to invest abroad, forecasting exchange rates, international
portfolio diversification, managing exchange risk, taxation issues, cost of capital and financial structure in
the multinational firm, and sources of financing.
Format: Lecture, discussion, cases.
Requirements: Group cases, individual presentations, final exam.
Prerequisites: FIN6601 or FIN6621.
FIN7732
International Banking
This course focuses on international banking activities. Structure and institutional context are emphasized
as well as the basic analytics of managing a bank's loan portfolio, its liquidity, foreign exchange, interest rate,
and off-balance-sheet positions. In addition, public policy issues such as debt restructuring, regulation and prudential
supervision will be discussed.
Format: Lectures, class discussions of cases, problem sets, and meetings with visitors from the banking
community.
Requirements: Two exams and several problem sets and cases.
Prerequisite: FIN7719 (can be taken concurrently).
FIN7738
Funding Investments
This course examines the available corporate securities that firms can use to finance investment. The course
will focus on: (1) the design of these securities (Why do bonds have embedded options? What is the role of preferred
stock?); (2) the issuing process for these securities (What do investment banks do? Is the underwriting process
important for the cost of capital?); (3) the pricing of these securities (How are credit risk in bonds and loans
priced?) The securities covered include corporate and junk bonds, bank loans, common and preferred equity, commercial
paper, securitization, as well as some recent innovations. Other topics include: the role of embedded options in
corporate bonds; the role of bank and loan covenants; the function of bond rating agencies; exchange offers; prepackaged
bankruptcies, debtor-in-possession financing; and pricing credit risk. The course is designed to be complementary
to Advanced Corporate Finance and Fixed Income Securities.
Format: Lectures, discussion of case studies, readings, and homework assignments.
Requirements: Case write-ups and homework assignments to be completed in groups, midterm and final exam.
Prerequisites: FIN6601 or FIN8621and working knowledge of a spreadsheet package.
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