The fundamentals of finance are taught in Finance 1 (FINC430 - Valuation) and Finance 2 (FINC431 - Corporate Financing). The descriptions of these two courses are listed below along with the description of Accelerated Corporate Finance (FINC440) which combines the material of Finance 1 and 2 into a one quarter course.
Two Quarter Option:
Finance 1 covers managers’ and investors’ most fundamental finance decision: how to value a project or an asset. Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the three principal methods for valuing projects or assets: discounted cash flow, multiples, and real options. These valuation tools lay the foundation for all work in capital markets and corporate finance.
Pre-requisites: Business Analytics I (DECS-430). Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.
Finance 2: Corporate Financing
Finance 2 covers the basic financial knowledge needed to run a firm—whether the firm is a multi-billion dollar international conglomerate or a three-person start up. Using a combination of lectures, numerical examples, and business cases, we will examine how firms fund their projects (capital structure), how they manage the risks that arise (risk management), and how they allocate the return on their investments (payout policy). This course is designed both for managers who will initially specialize in a different functional area (e.g., marketing, operations) and for managers who will be directly involved in making or analyzing these decisions (e.g., future senior executives, general managers, investment bankers, consultants, securities analysts, money managers, investment advisors).
Prerequisites: Finance 1 (FINC-430)
One Quarter Option:
Accelerated Corporate Finance combines Finance 1 and Finance 2 in an intensive one-quarter course. Accelerated Corporate Finance covers the financial knowledge you need to run a firm, whether the firm is a multi-billion dollar international conglomerate or a three-person start up. We will cover valuation (discounted cash flow, multiples, and real options), capital structure (how firms finance themselves and how they manage risk), and payout policy (should firms return capital to investors and if so how). For more details, you should read the descriptions of Finance 1 and Finance 2. The logical concepts will be covered in class, technical skills and intuition will be developed in class and through online exercises, and then the logic and tools will be applied to a set of valuation, financing, risk management, and payout cases. Given the pace of the course, students are expected to be prepared to put in the extra effort in class and outside of class. Basic finance knowledge (discounting) and accounting is assumed.
Pre-requisites: Business Analytics I and Accelerated Corporate Finance qualifying exam. Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.
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