Course Descriptions

Course catalog descriptions for courses offered in all currently published terms.

Finance

Department Chairperson: Rajan, Uday
Department Website: http://www.bus.umich.edu/Academics/Departments/Finance
 
 
FIN 300 Financial Management
  3 hours Core Terms Offered: W15, F13, F14
  Advisory Prerequisites: Preceded or accompanied by ACC 301 
   
  Financial Management --- Financial Management. An introduction to the issues, theory, and methodology that comprise a framework for rational decision-making by financial managers. The objective of this course is to use examples, problems, and cases to develop analytical ability and to illustrate the practical application of financial theory and analysis. Topics include present value analysis, capital budgeting, pricing financial assets, firm financial structure and the cost of capital, mergers and acquisitions, and security underwriting.
 
 
FIN 302 Making Financial Decisions
  3 hours Elective Terms Offered: W15, F13, F14, W14
  Course Prerequisites: No credit in FIN 300 
   
  Making Financial Decisions --- Financial analysis provides a structure to estimate and compare the costs and benefits of decisions made in both our personal lives and within an organization, such as a firm. Students taking this course will develop a foundational understanding of rational decision-making using financial analysis and the ability to apply that framework to make personal investing decisions, allocate capital within an organization or firm, and to determine the value of a firm or any asset that produces cash flow. Students will also learn how to assess risk. Understand the relationship between risk and return when investing as well as gain a general understanding of financial markets. This course will utilize extensive examples, problem solving, and case studies both in class and in smaller discussion sections.
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FIN 308 Capital Markets and Investment Strategy
  1.5 hours Elective Terms Offered: W14(A)
  Course Prerequisites: No credit in FIN 310 
  Advisory Prerequisites: (FIN 300 or FIN 302), and TO 301 
   
  Capital Markets and Investment Strategy --- Capital Markets and Investment Strategies is a course that covers the fundamentals of making sound investment decisions using modern finance theory. The course focuses primarily on equity securities. Our ultimate goal in the class is constructing a portfolio of equities that delivers the best possible expected return given the risk inherent in holding the portfolio. To that end, we will discuss ideas about how to find investment opportunities, how to assess the rewards and risks of these opportunities, how best to hold these assets in a portfolio, and how to gauge the difference in returns we should expect to receive from this portfolio from those we actually earn.
 
 
FIN 309 Fixed Income Securities and Markets
  1.5 hours Elective Terms Offered: W14(B)
  Course Prerequisites: No credit in FIN 310 
  Advisory Prerequisites: (FIN 300 and FIN 302), and TO 301 
   
  Fixed Income Securities and Markets --- This course provides a comprehensive overview of the essentials of fixed income securities. In particular, the course introduces the principal classes of fixed income securities; money market instruments, Treasury securities, agency securities, corporate debentures, and mortgage-related instruments. In particular, we focus on the institutions, pricing, risks, and hedging of these securities. The course begins with Treasuries, securities affected primarily by interest rate risk. We discuss the mechanisms by which Treasuries are sold, how they are priced, quantifying their interest rate risk, and pricing of securities to manage risk. We examine the pricing of corporate bonds and derivatives that enable investors to hedge credit risk. Finally, the course addresses securitizations in the form of mortgage-backed securities and collateralized mortgage obligations.
 
 
FIN 314 Corporate Investment Decisions
  3 hours Elective Terms Offered: F13
  Advisory Prerequisites: FIN 300 
   
  Corporate Investment Decisions --- This course focuses on analysis of corporate investment decisions. Since the emphasis is on application of the concepts learnt in the core courses, the course is case-oriented. The course begins with the valuation tools of financing statement analysis, financial forecasting, and cash flow estimation and then shows how to estimate of cost of capital. The major emphasis of the course is valuation in different contexts such as resource allocation, mergers and acquisitions, and cross-border acquisitions. The course provides the student an opportunity to learn and practice spreadsheet skills. The course also provides an overview of working capital management.
 
 
FIN 317 Corporate Financing Decisions
  3 hours Elective Terms Offered: W15, F13, F14, W14
  Course Prerequisites: FIN 300 or 302 
   
  Corporate Financing Decisions --- This course develops the conceptual foundation for making corporate financing decisions. Capital structure theory is explained in detail with an in-depth analysis of market imperfections such as taxes, cost of financial distress, agency and informational issues. The next portion of the course covers different securities used to raise external capital with an emphasis on the institutional aspects of acquiring capital (Initial public offerings, seasoned equity offerings, public debt, convertible debt, private equity & venture capital). The causes and effects of financial distress and the bankruptcy process are explained. Payout policy and different payout strategies (dividends versus stock repurchase) are discussed. The course ends with a brief discussion of risk management. Throughout the course, financial theory will be integrated with the use of specific case studies.
 
 
FIN 320 Real Estate Fundamentals
  1.5 hours Elective Terms Offered: W14(A), W15(A)
   
  Real Estate Fundamentals --- This survey of urban real estate theory and practice considers the nature of real estate investment and finance, and the real estate business. Lectures and discussions supplement text and outside reading and classroom work. A local property will be extensively analyzed utilizing discounted cash flow programs and project feasibility techniques. A professional quality analysis report will be prepared for the selected property. Outside experts will speak on key appraisal, finance, brokerage and investment issues.
 
 
FIN 321 Commercial Real Estate Finance
  1.5 hours Elective Terms Offered: W14(B), W15(B)
  Course Prerequisites: FIN 300 or 302 
   
  Introduction to Commercial Read Estate Finance --- This course is designed as an introductory commercial real estate finance course, designed to pick up the specific fundamentals covered in Finance 320. The theoretical portion of the class will address all the components necessary to understand the foundation of commercial real estate from a value perspective. Value is central to virtually all real estate decision making including whether and how to lease, buy, or mortgage a property acquisition; whether to renovate, refinance, demolish, or expand a property; and when and how to divest (sell, trade or abandon) a property.
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FIN 325 Entrepreneurial Finance
  3 hours Elective Terms Offered: W14
   
  Entrepreneurial Finance --- This course is open to all BBA students and presents the fundamentals of venture capital and private equity finance. It is focused on financing startup and early stage, technology-based firms, later stage investment and buyouts. The course covers venture capital and private equity market structure and institutional arrangements and the application of financial theory and methods in a venture capital and private equity setting. Four main aspects of venture capital and private equity are covered: valuation, deal structuring, governance, and harvesting. "Live" case studies are used in demonstrate the practical, hands-on application of techniques following their development in class.
 
 
FIN 329 Financing Research Commercialization
  3 hours Elective Terms Offered: F13, F14
  Cross-listed with: ES 329 
   
  Financing Research Commercialization --- This course is a practicum, offering an opportunity to apply collective team work of a student/mentor alliance to building a launch pad for a technology-based venture. This course is open to Ross School MBA and BBA students as well as all UM graduate students. Student teams will work with mentors and principal investigators (PI) from UM faculty in the Medical School, College of Engineering and other divisions to build a business and marketing plan for a new technology or invention. Projects are based upon disclosures made to UM Office of Technology Transfer, other universities and industrial companies.
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FIN 334 Applied Quant/Value Portfolio Management
  3 hours Elective Terms Offered: W15, F13, F14, W14
  Course Prerequisites: FIN 300 or 302 
   
  Applied Quant/Value Portfolio Management --- This course provides a quant and action-based learning approach to quant/value active portfolio management, using a practical teaching approach with the resources located in the trading floor at the John R. and Georgene M. Tozzi Electronic Business and Finance Center. The first part of the course will focus on developing a systematic approach to choosing/analyzing stocks from a quant/value perspective. The second half of the course will focus on 'leading in thought and action,' as participants will critique and analyze stocks, risk, and holdings in existing mutual funds. The final project will combine the lessons learned throughout the course. Students will critique 4 real portfolios from the "lens" of a fund of funds, a senior quant analyst and portfolio manager.
 
 
FIN 335 Managing the Maize and Blue Fund
  1.5 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: ACC 318 
  Cross-listed with: ACC 335 
   
  Managing the Maize and Blue Fund --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
FIN 336 Managing Maize and Blue Fund
  1.5 hours Elective Terms Offered: W14(A), W15(A)
  Advisory Prerequisites: ACC 318 
  Cross-listed with: ACC 336 
   
  Managing the Maize and Blue Fund --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
FIN 338 Managing the Maize and Blue Fund as a Senior Analyst
  1.5 hours Elective Terms Offered: W14(B), W15(B), W14(A), W15(A)
  Advisory Prerequisites: ACC 318 
  Cross-listed with: ACC 338 
   
  Managing the Maize and Blue Fund as a Senior Analyst --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
FIN 340 Financial Trading
  1.5 hours Elective Terms Offered: W14(B)
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  Financial Trading --- This course is about how people trade in financial trading and how markets function. It uses both trading simulations and lectures to illustrate concepts such as order types, market clearing, information-based trading, liquidity and price manipulation. The course is designed for students that may take sales and trading jobs, but its relevant for all students who may trade securities in the future.
 
 
FIN 366 Real Estate Finance and Investments
  3 hours Terms Offered: W14
  Course Prerequisites: FIN 300 or 302 
   
  Real Estate Finance and Investments --- This course offers an introduction to real estate investment and financing issues, and begins the development of concepts and techniques for structuring real estate financial deals. The first half introduces mortgage analysis and structuring, the user cost of capital, valuation of income property and taxation of real estate. The second half explores advanced valuation, risk management, debt structuring, REITs, construction financing and securitization of real estate assets and liabilities. The objectives of the course are to provide you with the basic skills for analyzing and structuring real estate deals and to develop your intuition for identifying opportunities in real estate investments.
 
 
FIN 380 Options and Futures in Financial Decision Making
  1.5 hours Elective Terms Offered: F13(B)
  Course Prerequisites: No credit in FIN 316 
  Advisory Prerequisites: FIN 300 
   
  Options and Futures in Financial Decision Making --- This course addresses futures, options, and other financial derivatives. Students will develop a framework for analyzing and using these instruments in financial decision making. First, the characteristics of individual derivative securities and their markets will be examined. Second, students will study the fundamental economic principles for the pricing and hedging of these derivative securities. Finally, the applications of derivatives securities in different areas of finance will be discussed. These include hedging and risk management, portfolio insurance, index arbitrage, and corporate finance. The teaching will be done through lecture, case presentations, and discussions of major disasters in derivative applications and current market conditions in different derivative markets.
 
 
FIN 399 Independent Study Project
  1 - 3 hours Elective Terms Offered: S13, W15, M13, S14, F13, F14, W14, M14
  Advisory Prerequisites: JR.STD. 
   
  Independent Study Project --- Independent study projects, supervised by faculty, are available to juniors and seniors in good academic standing. To select a study project, students should consult the appropriate professor about the nature of the project and the number of the credit hours the work would earn. One to three credit hours may be earned. Junior and senior BBAs may elect only one independent study project in a term, and no more than three during the BBA program. No more than seven credit hours from study projects may be counted toward the BBA degree. To register for a project students must submit an approved Independent Study Project application, available online.
 
 
FIN 408 Capital Markets and Investment Strategy
  1.5 hours Elective Terms Offered: W15(A)
  Course Prerequisites: [FIN 300 or 302 or 557] and no credit in FIN 310 
  Advisory Prerequisites: TO 301 
   
  Capital Markets and Investment Strategy --- Capital Markets and Investment Strategies is a course that covers the fundamentals of making sound investment decisions using modern finance theory. The course focuses primarily on equity securities. Our ultimate goal in the class is constructing a portfolio of equities that delivers the best possible expected return given the risk inherent in holding the portfolio. To that end, we will discuss ideas about how to find investment opportunities, how to assess the rewards and risks of these opportunities, how best to hold these assets in a portfolio, and how to gauge the difference in returns we should expect to receive from this portfolio from those we actually earn.
 
 
FIN 409 Fixed Income Securities
  1.5 hours Elective Terms Offered: W15(B)
  Course Prerequisites: [FIN 300 or 302 or 557] and no credit in FIN 310 
  Advisory Prerequisites: TO 301 
   
  Fixed Income Securities and Markets --- This course provides a comprehensive overview of the essentials of fixed income securities. In particular, the course introduces the principal classes of fixed income securities; money market instruments, Treasury securities, agency securities, corporate debentures, and mortgage-related instruments. In particular, we focus on the institutions, pricing, risks, and hedging of these securities. The course begins with Treasuries, securities affected primarily by interest rate risk. We discuss the mechanisms by which Treasuries are sold, how they are priced, quantifying their interest rate risk, and pricing of securities to manage risk. We examine the pricing of corporate bonds and derivatives that enable investors to hedge credit risk. Finally, the course addresses securitizations in the form of mortgage-backed securities and collateralized mortgage obligations.
 
 
FIN 412 International Finance Management I
  1.5 hours Elective Terms Offered: F13(A), F14(A)
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  International Finance Management I --- The purpose of the International Financial Management sequence at the Ross School of Business is to provide the conceptual and analytical framework required for understanding how changes in international financial conditions influence the decision-making process of business leaders in the corporate and capital markets arenas. In the first course of the sequence, we focus on the major characteristics, institutions, and players of the exchange rate markets. In particular, we consider the interaction between cross-border trade, capital flows, interest rates, inflation, monetary and fiscal policies, economic growth, exchange rate regimes, Central Banks' interventions, and currency crises, and their impact on financial investment and corporate decision-making. The course is tailored to students seeking careers in international banking and portfolio management or in finance and strategy for domestic and multinational corporations.
 
 
FIN 414 International Finance Management II
  1.5 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  International Finance Management II --- The purpose of the International Financial Management sequence at the Ross School of Business is to provide the analytical framework required for understanding how changes in international financial conditions influence the decision-making process of business leaders in the corporate and capital markets arenas. In the second course of the sequence, we focus on the major characteristics, institutions, and players of the international stock and bond markets. In particular, we examine the opportunities presented in those markets by such liquid assets as currencies, equities, bonds, swaps, and other derivatives for achieving risk management, asset allocation, capital budgeting, and financing objectives. We also attempt to explain and interpret the recent wave of international financial crises affecting the global capital markets. The course is tailored to students seeking careers in international banking and portfolio management or in finance and strategy for domestic and multinational corporations.
 
 
FIN 415 Corporate Investment Decisions
  3 hours Elective Terms Offered: F14
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  Corporate Investment Decisions --- This course focuses on analysis of corporate investment decisions. Since the emphasis is on application of the concepts learnt in the core courses, the course is case-oriented. The course begins with the valuation tools of financing statement analysis, financial forecasting, and cash flow estimation and then shows how to estimate of cost of capital. The major emphasis of the course is valuation in different contexts such as resource allocation, mergers and acquisitions, and cross-border acquisitions. The course provides the student an opportunity to learn and practice spreadsheet skills. The course also provides an overview of working capital management.
 (more)
 
 
FIN 425 Entrepreneurial Finance
  3 hours Elective Terms Offered: W15
  Course Prerequisites: FIN 300 or 302 or 557 
   
  Entrepreneurial Finance --- This course is open to all BBA students and presents the fundamentals of venture capital and private equity finance. It is focused on financing startup and early stage, technology-based firms, later stage investment and buyouts. The course covers venture capital and private equity market structure and institutional arrangements and the application of financial theory and methods in a venture capital and private equity setting. Four main aspects of venture capital and private equity are covered: valuation, deal structuring, governance, and harvesting. "Live" case studies are used in demonstrate the practical, hands-on application of techniques following their development in class.
 
 
FIN 440 Financial Trading
  1.5 hours Elective Terms Offered: W15(B)
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  Financial Trading --- This course is about how people trade in financial trading and how markets function. It uses both trading simulations and lectures to illustrate concepts such as order types, market clearing, information-based trading, liquidity and price manipulation. The course is designed for students that may take sales and trading jobs, but its relevant for all students who may trade securities in the future.
 
 
FIN 466 Real Estate Finance and Investments
  3 hours Elective Terms Offered: W15
  Course Prerequisites: FIN 300 or 302 or 557 
   
  Real Estate Finance and Investments --- This course offers an introduction to real estate investment and financing issues, and begins the development of concepts and techniques for structuring real estate financial deals. The first half introduces mortgage analysis and structuring, the user cost of capital, valuation of income property and taxation of real estate. The second half explores advanced valuation, risk management, debt structuring, REITs, construction financing and securitization of real estate assets and liabilities. The objectives of the course are to provide you with the basic skills for analyzing and structuring real estate deals and to develop your intuition for identifying opportunities in real estate investments.
 
 
FIN 480 Options and Futures
  1.5 hours Terms Offered: F14(A)
  Course Prerequisites: No credit in FIN 316 
  Advisory Prerequisites: FIN 300 or FIN 302 
   
  Options and Futures in Financial Decision Making --- This course addresses futures, options, and other financial derivatives. Students will develop a framework for analyzing and using these instruments in financial decision making. First, the characteristics of individual derivative securities and their markets will be examined. Second, students will study the fundamental economic principles for the pricing and hedging of these derivative securities. Finally, the applications of derivatives securities in different areas of finance will be discussed. These include hedging and risk management, portfolio insurance, index arbitrage, and corporate finance. The teaching will be done through lecture, case presentations, and discussions of major disasters in derivative applications and current market conditions in different derivative markets.