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: 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: 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: W13(A), 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: W13(B), 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: F13, W13, F14, W14
  Advisory Prerequisites: F 300 
   
  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: W13(A), W14(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: W13(B), W14(B)
  Course Prerequisites: FIN 300 
   
  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: W13, 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: F13, W13, F14, W14
  Advisory Prerequisites: FIN 300 or FIN 302 (or permission of instructor) 
   
  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: W13(A), W14(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: W13(B), W14(B), W13(A), W14(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: W13(B), 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, M13, S14, F13, W13, 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 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 Corp Investment Dec
  3 hours 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.
 
 
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.
 
 
FIN 503 Financial Management
  2.25 hours Core Terms Offered: F14(B), F13(B)
  Course Prerequisites: (ACC 502 and TO 502 or equivalent) and (No credit in FIN 513, 551, 552, 553, 603) 
   
  Financial Management --- The course is primarily devoted to the principles of financial valuation. We will first discuss the concept of present value in extensive detail, and then apply the principles of valuation to value (a) real projects (or what is commonly referred to as capital budgeting) and (b) financial securities (stocks and bonds) under certainty. Since financial decision-making virtually always involves risk & uncertainty, we will then introduce the concept of risk, and the relation between risk & return. We will integrate our knowledge of cash flows with our understanding of risk to modify capital budgeting techniques in the presence of risk & uncertainty. The course concludes with an introductory treatment of the effects of financing on capital budgeting decisions. Although the concepts of competitive capital markets and market efficiency will not be covered in a separate session, they will be woven in the fabric of the course.
 
 
FIN 513 Financial Analysis
  2.25 hours Elective Terms Offered: F14(A)
  Course Prerequisites: No credit in FIN 503, 551, 552, 553 
   
  Financial Analysis --- This course is primarily devoted to fundamentals of financial analysis as applied to both corporate finance and financial markets. On the corporate side, the course deals with capital budgeting in great detail. Capital budgeting criteria (NPV, IRR) and cash flow estimation are discussed. The concept of risk is then introduced and the CAPM is used to derive cost of equity and then, the weighted average cost of capital. The course also provides as introductory treatment of the effects of financing on capital budgeting decisions. On the financial markets side, the course introduces the student to the concepts of competitive capital markets and market efficiency. The workings of the financial markets are explored using the trading room. The principles of equity valuation are also covered. Finally, term structure and bond valuation are discussed.
 
 
FIN 517 Real Estate Essentials
  3 hours Terms Offered: F13, F14
  Cross-listed with: UP 517 
   
  Real Estate Essentials --- The course gives students tools to help develop cities with vitality, including lively, transit-oriented downtowns and livable neighborhoods through real estate development and investment. This is an interdisciplinary course oriented towards students in business administration, urban and regional planning, urban design, public policy, law, landscape architecture, natural resources and environment, and others. Students work in teams to understand the art and science of creating walkable, transit oriented downtowns and livable neighborhoods. Key course elements include eleven lectures, an interdisciplinary team project, discussions, visiting experts, frequent reference to Ann Arbor for emerging trends in urban revitalization, use of current web resources, and a text on how to invest wisely in downtown real estate. The course uses surrounding villages, Detroit and national case studies as teaching tools. Entry level course for Real Estate Certificate Program. Link to the Certificate Program:
http://taubmancollege.umich.edu/planning/programs/graduate_certificates/real_estate_development/
 
 
FIN 551 Financial Management and Policy
  3 hours Core Terms Offered: M13, F13, W13, F14, M14
  Course Prerequisites: (ACC 501 and TO 501) and (no credit in FIN 503, 513, 552, 553) 
   
  Financial Management and Policy --- This course is primarily devoted to the principles of financial valuation. We will first discuss the concept of present value in extensive detail, and then apply the principles of valuation to value (a) real projects (or what is commonly referred to as capital budgeting) and (b) financial securities (stocks and bonds) under certainty. Since financial decision-making virtually always involves risk & uncertainty, we will then introduce the concept of risk, and the relation between risk & return. We will integrate our knowledge of cash flows with our understanding of risk to modify capital budgeting techniques in the presence of risk & uncertainty. The course concludes with an introductory treatment of the effects of financing on capital budgeting decisions.
 (more)
 
 
FIN 557 Financial Management
  2.25 hours Terms Offered: M14
   
  Financial Management --- This course is an introduction to the principles of financial decision-making. Topics include (i) Present value, focusing on valuation of projects and financial securities; (ii) Portfolio theory and the CAPM, which highlight the risk-return trade-off; (iii) Determining the cost of capital for a project; (iv) Principles of capital structure.
 
 
FIN 565 Real Estate Development: Fundamentals
  3 hours Elective Terms Offered: W14, W13(A)
  Advisory Prerequisites: BA/ UP 517/Permission of instructor 
  Cross-listed with: UP 565 
   
  Real Estate Development: Fundamentals --- Cities with Vitality: How to Create Lively, Transit Oriented Downtowns and Liveable Neighborhoods...And How to Own a Piece of the Action.
This course is an interdisciplinary course of about 40 MBA, MUP, MUD, Architecture, Public Policy, Law, Landscape Architecture, Construction Engineering and SNRE graduate students working to understand the art and science of creating walkable, mixed use, transit oriented downtowns and livable neighborhoods.
 
 
FIN 566 Real Estate Finance and Investment I
  1.5 hours Elective Terms Offered: W14(A)
  Course Prerequisites: (FIN 503 or 513 or 551 or 591 or Financial Engineering student) and (no credit in FIN 568, UP 566) 
   
  Real Estate Finance and Investment I --- This course begins the development of concepts and techniques for structuring real estate financial deals. It introduces mortgage analysis and structuring, the user cost of capital, valuation of income property and taxation of real estate. The objectives of the course are to provide you with the basic skills for analyzing and structuring mortgages and real estate deals and to develop your intuition for indentifying opportunities and avoiding the pitfalls in real estate.
 
 
FIN 567 Real Estate Finance and Investment II
  1.5 hours Elective Terms Offered: W14(B)
  Course Prerequisites: (FIN 503 or 513 or 551 or 591 or Financial Engineering student) and (no credit in FIN 568, UP 566) 
  Advisory Prerequisites: FIN 566 
   
  Real Estate Finance and Investment II --- This course continues the development of concepts and techniques for structuring real estate financial deals begun in FIN 566. We focus on 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 more advanced skills for analyzing and structuring mortgages and real estate deals as well as to deepen your intuition for identifying opportunities and avoiding the pitfalls in real estate.
 
 
FIN 570 Real Estate Development: Advanced
  1.5 hours Terms Offered: W13(B)
  Advisory Prerequisites: FIN/UP 565 
  Cross-listed with: UP 570 
   
  Real Estate Development: Advanced --- Cities with Vitality: How to Create Lively, Transit Oriented Downtowns and Livable Neighborhoods...And How to Own a Piece of the Action.
This course is an interdisciplinary course of about 40 MBA, MUP, MUD, Architecture, Public Policy, Law, Landscape Architecture, Construction Engineering and SNRE graduate students working to understand the art and science of creating walkable, mixed use, transit oriented downtowns and livable neighborhoods.
 
 
FIN 575 Financial Modeling
  1.5 hours Terms Offered: F13(B)
  Advisory Prerequisites: FIN core or concurrent enrollment in FIN 603 required 
   
  Financial Modeling --- This course is on financial modeling in Excel. Financial models have become increasingly complicated over the years, and this course is intended as an introduction to some of the modeling techniques used by professionals in the finance field. Topics covered include construction of free cash flows, forecasting cash flows, LBO models, minimum-variance frontiers and portfolio choice subject to constraints. The emphasis throughout will be on constructing and using models in Excel with a focus on sensitivity analysis. Along the way, various Excel techniques and functions are explored as necessary.
 
 
FIN 580 Options and Futures in Corporate Decision Making
  2.25 hours Elective Terms Offered: F13(A), F14(A), W13(A), F13(B), W14(A)
  Advisory Prerequisites: FIN 503 or 513 or 551 
   
  Options and Futures in Corporate Decision Making --- This course introduces students to one of the most important and most technically challenging areas in finance: derivative securities. Derivative securities include options, futures and forward contracts and swaps among other securities. This course examines corporate risk management techniques and how derivatives can be used to manage risk. The course will also cover institutional characteristics of derivatives exchanges, OTC markets and market clearing mechanisms. Finally, we will examine the pricing of derivatives. Particular emphasis will be given to Black-Scholes model and the binomial option-pricing model. Applications will cover real options.
 
 
FIN 583 Energy Project Finance
  1.5 hours Elective Terms Offered: W14(A)
  Course Prerequisites: FIN 503 or 513 or 551 or 591 or 603 
   
  Energy Project Finance --- The energy industry is undergoing its biggest transition since the widespread adoption of electricity. A convergence of factors - Global warming, new technologies, resource constraints, shifting global demographics, and unpredictable global policies - has put in motion what will be the largest industrial transition in history.

Harnessing and using energy productively is enormously capital intensive. Deploying capital into energy projects is complex, requiring investors to manage the diverse range of policy mechanisms, identify or develop the necessary supporting infrastructure and understand volatile markets and politics.

The 6-week Energy Finance course will examine the economic drivers for energy investments and the fundamentals of financing energy projects. It will also cover traditional financial modeling tools used in the oil and gas industry, project finance models popular in the renewable energy industry, and new innovative financial mechanisms used by corporations involved in energy efficiency and demand response. Every week a guest speaker from the energy industry will lead students through a new financial model used to address a real world energy issue, allowing students to fine tune their analytical tools through interaction with professionals who use these tools on a regular basis. It will include three Excel based modules on modeling energy projects.
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FIN 586 Entrepreneurial Finance
  1.5 hours Core Terms Offered: F14(B), F13(B)
   
  Finance for the Entrepreneurial Firm --- In this course, students learn the fundamentals of entrepreneurial finance and apply them to the entrepreneurial startup project their team is developing in the University of Michigan Masters of Entrepreneurship Program (MS-E) practicum. This course is taught from the joint perspective of the entrepreneur and the investor through the several states of new venture development, each state of which involves "private" finance, in which valuation is negotiated between the groups involved instead of through a public market.

This characteristic introduces the need for structures of control, monitoring and ultimate disposition of the firm ("investment harvest") as a public company or by sale to a strategic corporate or institutional investor. Entrepreneurial finance market structure, institutional arrangements, and the application of financial theory and methods provide the core of class discussions.

Four main aspects of entrepreneurial finance are covered: valuation, deal structuring, investment monitoring and governance, and harvesting. Case studies and examples are used to demonstrate the practical, hands-on application of financing principles and techniques following their development in class.
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FIN 591 Financial Management
  2.25 hours Core Terms Offered: P14, P13
  Advisory Prerequisites: Global MBA Students only 
   
  Financial Management --- The course is primarily devoted to the principles of financial valuation. We will first discuss the concept of present value in extensive detail, and then apply the principles of valuation to value (a) real projects (or what is commonly referred to as capital budgeting) and (b) financial securities (stocks and bonds) under certainty. Since financial decision-making virtually always involves risk & uncertainty, we will then introduce the concept of risk, and the relation between risk & return. We will integrate our knowledge of cash flows with our understanding of risk to modify capital budgeting techniques in the presence of risk & uncertainty. The course will end with an introductory treatment of international issues in finance, specifically the role of international parity conditions in cross-border capital budgeting decisions. Although the concepts of competitive capital markets and market efficiency will not be covered in a separate session, they will be woven in the fabric of the course.
 
 
FIN 603 Advanced Financial Analysis & Valuation
  3 hours Terms Offered: F13
  Course Prerequisites: ACC 502; and No credit in FIN 615 
   
  Advanced Financial Analysis & Valuation --- This course is intended for first-year MBA students interested in careers in investment banking, financial consulting, corporate finance, and general management consulting with a focus on finance. The main objective of the course is to introduce students to valuation concepts and train them in applying these concepts in a variety of settings such as, project analysis, company valuation, mergers and acquisitions, private equity and venture capital deals, leveraged buyouts, stock and bond valuation. Furthermore, the course will cover fundamentals of portfolio theory, term structure, market efficiency, and Modigliani-Miller framework, in order to prepare students for finance electives. Students who complete this course cannot enroll in FIN 615.
 
 
FIN 604 Applied Investment Management
  1.5 hours Elective Terms Offered: F13(B), W14(A)
  Advisory Prerequisites: ACC 502 and (FIN 603 or FIN 503 concurrently) 
   
  Applied Investment Management ---This course is intended for first-year MBA students interested in careers in portfolio management, securities trading, financial advising, risk management, hedge funds, commercial banking, and private wealth management. The main objective of the course is to introduce students to fundamentals of security pricing and portfolio theory and then immerse them in quantitative applications. This course promotes actions-based learning by guiding students through multistep process for managing both conventional assets ( such as stocks and bonds) and alternative assets (such as hedge funds and managed futures). This process is based on a deep understanding of theory and concepts, combines with carefully selected stimulation's and projects and exposure students to real world applications.
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FIN 608 Capital Markets and Investment Strategy
  2.25 hours Elective Terms Offered: F14(B), F13(B)
  Course Prerequisites: (FIN 503 or 513 or 551 or 591 or Financial Engineering student) and (no credit in FIN 610) 
   
  Capital Markets and Investment Strategy --- This course covers portfolio analysis, asset pricing models, and investment strategies. It uses both the lecture and the case method of instruction to develop a practical understanding of some of the more important financial instruments and markets. Security valuation and management of investment strategies are major themes present throughout the course. A fundamental objective of the course is to enable students to gain a robust familiarity with approaches that can be adapted to analysis of broad classes of financial assets and markets. Such skills are indispensable to investment analysis in an economic environment characterized by an unprecedented amount of financial innovation, both in the creation of new securities and in the development and evolution of financial institutions.
 
 
FIN 609 Fixed Income Securities and Markets
  2.25 hours Elective Terms Offered: F14(B), W13(B), W14(B), F13(B)
  Course Prerequisites: FIN 503 or 513 or 551 or 591 or Financial Engineering student 
   
  Fixed Income Securities and Markets --- This course uses both cases and lectures to develop a practical understanding of some of the more important fixed income securities and markets. Derivatives and the management of fixed income securities are major themes present throughout the course. This course covers the term structure of interest rates, Treasury securities, strips, swaps, and other fixed income derivatives.
 
 
FIN 612 International Financial Management I
  1.5 hours Elective Terms Offered: F13(A), F14(A)
  Advisory Prerequisites: FIN 503 or 513 or 551 or 591 
   
  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 614 International Financial Management II
  1.5 hours Elective Terms Offered: F14(B), F13(B)
   
  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 615 Valuation
  2.25 hours Elective Terms Offered: F13(A), F14(A), M13, F14(B), M14, W13(A), F13(B), W14(A)
  Course Prerequisites: No credit in FIN 603 
  Advisory Prerequisites: FIN 503 or FIN 551 
   
  Valuation --- This course focuses on corporate asset management, in particular, on valuation. Topics include capital budgeting methods, estimating incremental cash flows, estimating cost of capital, valuation of projects, valuation of companies in takeovers, valuation of leveraged buyouts, valuation of private companies and valuation of strategic options. The course also covers working capital management.
 
 
FIN 618 Advanced Derivatives and Risk Management Techniques
  2.25 hours Elective Terms Offered: W13(B), W14(B)
  Course Prerequisites: No credit in FIN 418 
  Advisory Prerequisites: FIN 580 
   
  Advanced Derivatives and Risk Management Techniques --- This is an advanced course in derivative securities and risk management building on what students have learned in FIN 580. The course covers pricing of advanced derivatives such as options on futures, stock indices, currency options, interest rate options, interest rate swaps, swaptions, energy and weather derivatives, and credit default swaps. It also covers exotic options such as forward start, compound, chooser, shout, lookback, barrier, binary, and options to exchange assets and options involving multiple assets. New risk management techniques covered include basic numerical methods, (Monte Carlo, finite differing) and hedging parameter uncertainty (greeks), and volatility estimation techniques (GARCH and stochastic volatility models).
 
 
FIN 621 Corporate Financial Policy
  2.25 hours Elective Terms Offered: F13(A), F14(A), F14(B), W13(A), W14(A)
  Course Prerequisites: No credit in FIN 616 
  Advisory Prerequisites: FIN 503/513/551 
   
  Corporate Financial Policy --- This is an advanced corporate finance course with an emphasis on debt and equity management, security issuance, and distribution policy. Topics include descriptions of types of debt and equity, tradeoffs in the choice of an optimal capital structure; the role of capital structure in competitive strategy; the design of capital structure and securities to control information problems and limit conflicts of interest between different classes of security holders; procedures and costs of issuing securities including initial public offerings, and the determinants of optimal payout policy. The course is intended for those with career objectives in financial management, the corporate finance aspects of investment banking, or general management.
 
 
FIN 623 Venture Capital Finance
  2.25 hours Elective Terms Offered: F13(A), F14(A)
  Cross-listed with: ES 623 
   
  Venture Capital Finance --- This course covers venture capital market structure and institutional arrangements and the application of financial theory and methods in a venture capital finance setting. It presents and applies the fundamentals of venture capital finance, employing "live" case studies to focus on financing startup and early stage, technology-based firms.
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FIN 624 Private Equity Finance
  2.25 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: FIN 623 
  Cross-listed with: ES 624 
   
  Private Equity Finance --- This course presents the fundamentals of private equity finance, focusing on financing mezzanine deals and buyout transactions. The course covers the private equity and buyout market structure, institutional arrangements and application of financial theory and methods in a private equity and buyout setting. The course covers four main aspects of private equity mezzanine investment and buyout transactions: valuation, deal structuring, governance, and harvesting. "Live" case studies are used to demonstrate the practical, hands-on application of techniques following their development in class.
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FIN 626 Global Private Equity
  1.5 hours Elective Terms Offered: W13(A), W14(A)
  Cross-listed with: ES 626 
   
  Global Private Equity --- As the third course in the sequence, this course extends the coverage of venture capital and private equity from the US model to other parts of the globe. Similarities and differences among regions and countries are examined and related to fundamental forces such as political, cultural, legal and regulatory differences. Emphasis is placed on investment characteristics found in emerging markets and in developed markets of the world. Text, cases and live deals are employed to study the issues involved. As with the earlier courses, this course applies simulation and real options technology to the valuation issues involved as well as game theory to the negotiating of contracts among the several categories of players mentioned above. Familiarity with these valuation technologies is a necessary prerequisite for the course.
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FIN 629 Financing Research Commercialization
  3 hours Elective Terms Offered: F13, F14
  Advisory Prerequisites: MBA Core or permission of instructor 
  Cross-listed with: ES 629 
   
  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 631 Risk Management in Banks and Financial Institutions
  2.25 hours Elective Terms Offered: W14(B), W13(A)
  Course Prerequisites: No credit in FIN 632 
  Advisory Prerequisites: FIN 503 or 513 or 551 or 591; and FIN 580 
   
  Risk Management in Banks and Financial Institutions --- The course will provide students with a risk management view of financial institutions. The key areas covered will be interest rate risk arising from mismatches of asset and liability durations, market risk arising from trading in bonds, equity and foreign currencies by financial institutions, credit risk on individual loans and bonds and asset portfolios, liquidity risk, and off-balance sheet items such as loan commitments, letters of credit and securitization.
 
 
FIN 640 Financial Trading
  1.5 hours Elective Terms Offered: W13(B), W14(B)
  Advisory Prerequisites: FIN 503 or 513 or 551 
   
  Financial Trading --- This course is about trading financial assets. The course is intended for MBA students that expect to take trading (market making) jobs, but it is also relevant for all students that expect to trade securities frequently. The course uses a combination of lectures and trading simulations/games conducted on the Ross School of Business trading floor to make students comfortable with ideas like order type, bid-ask spread, information, and dynamic hedging. Students that have taken the core should be prepared for this course.
 
 
FIN 645 Real Options in Valuation
  2.25 hours Elective Terms Offered: F13(B), W13(A), W14(A)
  Course Prerequisites: FIN 580 
   
  Real Options in Valuation --- This is a course on real options: The use of option theory to determine the value of flexibility, patents, technological innovation, learning by doing, marketing surveys, the potential to franchise or expand operations and other issues relevant to corporate strategy. Specific applications treated in detail: valuation of movie rights and patents, manufacturing facilities, and R&D. The course also conducts a detailed valuation of operations like power plants and refineries whose inputs, outputs or both are traded in futures markets. The course moves beyond Black-Scholes and the binomial option pricing model to various extensions required to fit real options applications. These extensions are also used widely in the valuation of advanced financial options. The course involves considerable spreadsheet work and shows how relatively simple spreadsheets can be used to implement the binomial option pricing model.
 
 
FIN 647 Corporate Financial Strategy
  2.25 hours Elective Terms Offered: W13(B), W14(A)
  Advisory Prerequisites: FIN 580, FIN 615 and FIN 621 
   
  Corporate Financial Strategy --- This is the capstone course among corporate finance courses. It deals with the co-determination of financial policy and business strategy. The course is divided in three. The first segment focuses on the issues in designing a financial strategy for companies that are growing and expanding rapidly after their IPO. The second segment studies the challenges in designing a financial strategy and a major corporate restructuring at the same time. It includes divestitures, asset sales, going private, and bankruptcy, among other strategies. The final segment focuses on business strategies that are made possible by innovative corporate financial engineering. Most cases discussed are about fast growing companies, companies that face a rapidly changing environment, or companies with drastic restructuring needs.
 
 
FIN 725 Managing the Maize and Blue Fund
  1.5 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: (ACC 711 and 713), or ACC 712 
  Cross-listed with: ACC 725 
   
  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 726 Managing the Maize and Blue Fund
  1.5 hours Elective Terms Offered: W13(A), W14(A)
  Advisory Prerequisites: (ACC 711 and 713), or ACC 712 
  Cross-listed with: ACC 726 
   
  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 728 Managing the Maize and Blue Fund as a Senior Analyst
  1.5 hours Elective Terms Offered: W13(B), W14(B), W13(A), W14(A)
  Advisory Prerequisites: (ACC 711 & 713) or ACC 712 
  Cross-listed with: ACC 728 
   
  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 742 Special Topics
  1.5 hours Elective Terms Offered: F13(A)
   
  Special Topics in Finance --- Special Topics courses are used to cover current topics and for faculty members to introduce their current research into the curriculum. Courses are not offered every term, and coverage differs from one offering to the next. When a course is to be offered, the faculty member will provide a course description.
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FIN 743 Special Topics in Finance
  1.5 hours Elective Terms Offered: F13(B)
  Advisory Prerequisites: FIN 553 
   
  Special Topics in Finance --- Special Topics courses are used to cover current topics and for faculty members to introduce their current research into the curriculum. Courses are not offered every term, and coverage differs from one offering to the next. When a course is to be offered, the faculty member will provide a course description.
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FIN 750 Independent Study Project
  1 - 3 hours Elective Terms Offered: S13, P14, M13, S14, F13, P13, W13, F14, W14, M14
  Advisory Prerequisites: Graduate standing 
   
  Independent Study Project --- Independent study projects, supervised by faculty, are available to graduate business students in good academic standing. To select a project, students should consult the appropriate professor about the nature of the project and the number of credit hours the work would earn. Students earn one to three credit hours per project and may elect only one study project in a term. Graduate business students should consult their program bulletins for information
regarding total number of projects and credits that can be applied to their degree. To register for a project students must submit an approved Independent Study Project application, available online.
 
 
FIN 855 Fundamentals of Investment Decisions with Symmetric Information
  3 hours Terms Offered: F13, F14
  Advisory Prerequisites: Doctoral standing 
   
  Fundamentals of Investment Decisions with Symmetric Information --- This course will make students familiar with the basic techniques for making investment decisions and valuing securities when all economic agents have essentially the same information. The course will develop the basic concepts of asset pricing such as valuation by arbitrage, arbitrage pricing theory, portfolio selection, means variance analysis, the Capital Asset Pricing Model, and inter-temporal capital asset pricing.
 
 
FIN 865 Asymmetric Information
  3 hours Terms Offered: F13, F14
  Advisory Prerequisites: Doctoral standing 
   
  Asymmetric Information --- This course is designed to introduce students to the tools used in modeling asymmetric information and to expose them to applications in different areas. The course begins with an introduction to the main tools used in game theory, Bayesian Nash equilibrium and perfect Bayesian equilibrium. Adverse selection and moral hazard, the two main approaches to modeling asymmetric information is contract theory, are discussed. For much of the course, the focus is on applications of asymmetric information models drawn from different areas, including disclosure of information (accounting), external financing (finance), technology licensing (information technology), pricing (marketing), and auctions (of interest to several areas).
 
 
FIN 871 Corporate Finance
  1.5 hours Elective Terms Offered: F13(A), F14(A)
  Advisory Prerequisites: Doctoral standing 
   
  Corporate Finance --- The purpose of the course is to provide a background for understanding the determinants of corporate financial policy and introduce students to current research in finance. The course complements the material in BA 855. The boundaries of the firm, its financial structure and issues of corporate control are discussed by drawing upon theories of agency, incomplete contracting, and property rights. We cover strategic issues in the market for corporate control, bankruptcy and reorganizations and optimal contracts as applied to the design of securities. We will also discuss issues such as the interaction between product market competition and financial policy.
 
 
FIN 872 Continuous-Time Asset Pricing
  1.5 hours Elective Terms Offered: W13(B), W14(B)
  Advisory Prerequisites: Doctoral standing 
   
  Continuous-Time Asset Pricing --- This is an introduction to continuous-time finance for second Ph.D students. The course begins with a description of continuous-time stochastic processes. It then reviews the derivations of some classic asset-pricing models, including Meron's Intertemporal CAPM and the Black-Scholes formula. The class concludes by discussing general no-arbitrage results and some bon-pricing models.
 
 
FIN 875 Empirical Methodology in Finance
  1.5 hours Elective Terms Offered: W13(A), W14(A)
  Advisory Prerequisites: Doctoral standing 
   
  Empirical Methodology in Finance --- This seminar course will expose graduate students to the more commonly used empirical methods in financial literature. As this is an application-oriented course, it is assumed that students have had exposure to both finance and econometrics at the graduate level. This course will study the important applications of empirical methodology to financial problems over the past two decades. The course will not deal with either finance or econometrics, but important applications of the latter in testing basic financial models.
 
 
FIN 885 Research Topics in Finance
  1.5 hours Elective Terms Offered: W13(B), W14(B)
   
  Research Topics in Finance --- Research Topics courses are used to cover current topics. Courses are not offered every term, and coverage differs from one offering to the next. When a course is to be offered, the instructor will provide a course description.
 
 
FIN 900 Special Research for Doctoral Applicants & Candidates
  1 - 6 hours Terms Offered: S13, P14, M13, S14, F13, P13, W13, F14, W14, M14
  Advisory Prerequisites: Applicants and Candidates Only 
   
  Special Research --- Special Research for Doctoral Applicants & Candidates. Individual Research projects for Doctoral Applicants and Candidates are available. See faculty in your area of interest.
 
 
FIN 990 Dissertation - Precandidacy
  1 - 8 hours Terms Offered: S13, P14, M13, S14, F13, P13, W13, F14, W14, M14
  Advisory Prerequisites: Election for dissertation work by doctoral student not yet admitted as a Candidate 
   
  Dissertation - Precandidacy --- Dissertation research at the Precandidacy stage.
 
 
FIN 995 Dissertation - Candidacy
  4 - 8 hours Terms Offered: S13, P14, M13, S14, F13, P13, W13, F14, W14, M14
  Course Prerequisites: Candidate 
   
  Dissertation - Candidacy --- Dissertation research at the candidacy stage.