2014-2015 Catalog

Finance (Fin)

http://www.business.und.edu/finance

Beneda, Dennis, Haskins, Lee, Nelson, Smith (Chair), and Zhang

The Department of Finance offers two programs of study:

  1. Investments and
  2. Managerial Finance and Accounting.

The Investments major offers a focus on investing, professional asset management, and risk management. This major is designed to provide students with an appropriate balance between theoretical knowledge and specific decision-making skills. Foundation courses cover modern finance theory and modeling, including valuation of both financial and real assets. Utilizing the resources available in the Lanterman Investment Center, a state-of-the-art “trading room” environment, students expand their knowledge of investment-related topics, including equities, fixed income instruments, financial derivatives, foreign exchange transactions, and many more. Investments majors are required to participate in the Student Managed Investment Fund, which currently has approximately $1.2 million in assets under management.

 

B.B.A. with Major in Managerial Finance and Accounting

 

B.B.A. with Major in Investment

Required 125 credits (36 of which must be numbered 300 or above, and 60 of which must be from a 4-year institution) including:

I. Essential Studies Requirements (see University ES listing).

II. The College of Business and Public Administration Requirements, see College listing and including:

ACCT 200
  & ACCT 201
Elements of Accounting I
   and Elements of Accounting II
6
ACCT 315Business in the Legal Environment3
ISBC 117Personal Productivity with Information Technology1
ISBC 317Information Systems in Enterprise3
ECON 201Principles of Microeconomics3
ECON 202Principles of Macroeconomics3
ECON 210Introduction to Business and Economic Statistics3
ECON 303Money and Banking3
MATH 103College Algebra3
MATH 146Applied Calculus I3
MGMT 300Principles of Management3
MGMT 301Operations Management3
FIN 310Principles of Financial Management3
MGMT 475Strategic Management3
MRKT 305Marketing Foundations3
POLS 115American Government I3
COMM 110Fundamentals of Public Speaking3
Select one of the following:3
Introduction to Cultural Anthropology
Introduction to Psychology
Introduction to Sociology
Total Credits55

III. The Following Major Courses:

ACCT 218Advanced Spreadsheet Applications3
ACCT 301Intermediate Accounting I3
FIN 340Intermediate Financial Management3
FIN 360Capital Market Financing and Investment Strategies3
FIN 370Student Investment Fund I1
FIN 415Fixed Income Analaysis and Portfolio Management3
FIN 420Investment Analysis and Portfolio Management3
FIN 430International Financial Management3
FIN 450Financial Derivatives3
FIN 470Student Investment Fund II3
Select three of the following:9
Intermediate Accounting II
Real Estate Finance and Investment
Real Estate Appraisal
Financial Statement Analysis
Lending and Liquidity Management
Valuing Real Assets and Financial Strategy
Managing Financial Institutions
Cases in Managerial Finance
Internship in Finance (no more than 3 credits)
Total Credits37

The Managerial Finance and Accounting degree combines the essential attributes of traditional accounting and managerial finance programs into a combined major that meets the needs of those individuals desiring careers in corporate finance or accounting. Traditionally, accountants recorded transactions and other economic data and reported the results in the form of financial statements and internal managerial reports. Financial managers typically forecast, plan, and analyze accounting data and present the accounting data in formats convenient for decision making. There were some distinctions as well as overlaps in knowledge and skills needed in the two disciplines in the past. Recently, business has undergone a shift in responsibilities within the areas of accounting and finance. Specifically, the areas of financial and managerial accounting and the various topics in corporate finance such as corporate finance theory, financial statement analysis and investments have become interdependent for those seeking career opportunities in internal management and control, treasury management, and strategic financial management. The required major courses for this major include (plus three electives):

B.B.A. with Major in Managerial Finance and Accounting

Required 127 credits (36 of which must be numbered 300 or above, and 60 of which must be from a 4-year institution) including:

I. Essential Studies Requirements (see University ES listing).

II. The College of Business and Public Administration Requirements, see College listing and including:

ACCT 200
  & ACCT 201
Elements of Accounting I
   and Elements of Accounting II
6
ACCT 315Business in the Legal Environment3
ISBC 117Personal Productivity with Information Technology1
ISBC 317Information Systems in Enterprise3
ECON 201Principles of Microeconomics3
ECON 202Principles of Macroeconomics3
ECON 210Introduction to Business and Economic Statistics3
ECON 303Money and Banking3
MATH 103College Algebra3
MATH 146Applied Calculus I3
MGMT 300Principles of Management3
MGMT 301Operations Management3
FIN 310Principles of Financial Management3
MGMT 475Strategic Management3
MRKT 305Marketing Foundations3
POLS 115American Government I3
COMM 110Fundamentals of Public Speaking3
Select one of the following:3
Introduction to Cultural Anthropology
Introduction to Psychology
Introduction to Sociology
Total Credits55

III. The Following Major Courses:

ACCT 218Advanced Spreadsheet Applications3
ACCT 301Intermediate Accounting I3
ACCT 302Intermediate Accounting II3
ACCT 309Accounting Information Systems3
ACCT 320Accounting for Production3
FIN 340Intermediate Financial Management3
FIN 350Financial Statement Analysis3
FIN 360Capital Market Financing and Investment Strategies3
FIN 475Cases in Managerial Finance3
Select three upper-division courses from Accountancy (Acct) or Finance (Fin)9
Total Credits36

ACCT 218Advanced Spreadsheet Applications3
ACCT 301Intermediate Accounting I3
ACCT 302Intermediate Accounting II3
ACCT 309Accounting Information Systems3
ACCT 320Accounting for Production3
FIN 340Intermediate Financial Management3
FIN 350Financial Statement Analysis3
FIN 360Capital Market Financing and Investment Strategies3
FIN 475Cases in Managerial Finance3
Select three upper-division courses from Accountancy (Acct) or Finance (Fin)9
Total Credits36

Courses

FIN 216. Insurance and Risk Management. 3 Credits.

The purpose of this course is to provide an introductory, consumer-oriented overview of risk and insurance. Students begin by examining the basic concepts of risk and insurance, insurance fields and functions, regulation, underwriting and the legal framework. Three broad classes of insurance will be addressed: life and health, property and liability, and auto. Other topics include risk management, loss control, risk rentention/reduction decisions, loss adjustment, claim settlement, investment functions, disability insurance, retirement programs, negligence and legal liability. F.

FIN 220. Personal Investing. 3 Credits.

Investment concepts for individual investors who are, or will be, actively developing and monitoring their own investment portfolios. Covers basic analysis techniques, investment vehicles, strategies for implementing investment goals in a portfolio context, risk-return tradeoffs, and sources of investment information. Not available to students who have successfully completed FIN 420 or its equivalent. F,S.

FIN 230. Principles of Real Estate. 3 Credits.

Principles of real property with an emphasis on home ownership. Real property rights, the process for transferring those rights, the impact of taxation, and concepts of city development. Career options in real estate, including brokerage, appraisal, lending, and property management. F,S.

FIN 251. Personal Finance. 3 Credits.

The personal financial planning and management process: goal identification and budgeting; minimizing tax liability; uses and costs of various forms of credit; buying, selling and/or leasing real estate, automobiles and other major items; life, health, property and income insurance; various investment options; the retirement planning process; and estate planning options. The role of financial planning professionals and financial planning as a career option are also discussed. F,S.

FIN 310. Principles of Financial Management. 3 Credits.

This course introduces students to asset management, cost of capital, dividend policy, valuation, capital structure planning, and working capital management. Forms of business organizations and tax environment are surveyed. Managerial implications of current developments in national and international capital markets are reviewed. Prerequisites: ACCT 201, ISBC 117, ECON 210; Sophomore, Junior or Senior Standing; minimum of 59 credit hours; declared and pre-CoBPA majors only. F,S,SS.

FIN 310L. Problems In Financial Management. 1 Credit.

FIN 321. Real Estate Finance and Investment. 3 Credits.

Nature of real estate finance, financial sources, role of government, real estate financial instruments, loan processing, defaults and foreclosures in real estate finance, fundamentals of real estate investment analysis. Prerequisites: FIN 310 and Sophomore, Junior or Senior standing. F.

FIN 324. Real Estate Appraisal. 3 Credits.

Nature of value; appraisal process; analysis of neighborhoods, land and improvements; cost, market data and income approach to value; appraisal report; code of ethics. Prerequisite: Sophomore standing or higher. S.

FIN 340. Intermediate Financial Management. 3 Credits.

Integrated coverage of topics in finance theory. This course continues to develop student understanding of corporate finance topics which were introduced in FIN 310. These topics include valuation, project analysis, capital structure planning, working capital management, and cash flow analysis. The course also introduces students to risk analysis, the capital asset pricing model, and investment analysis. Prerequisites: FIN 310 and Sophomore, Junior or Senior Standing; declared CoBPA majors only. F,S.

FIN 350. Financial Statement Analysis. 3 Credits.

Students interpret and evaluate financial statements used to report financial performance. Analysis incorporates accounting, financial, and economic models and data; and describes various reporting regulations, principles, rules, standards, and interpretations. The course includes an investigation of current issues and debates in financial statement reporting. Prerequisites: ACCT 301 and FIN 310; Sophomore, Junior or Senior Standing; declared CoBPA majors only. F,S.

FIN 360. Capital Market Financing and Investment Strategies. 3 Credits.

Covers analysis and procedures for implementing particular financing and investment plans in financial markets. Includes financing and investment through commercial banks, investment banks, pension funds, venture capital sources, insurance companies and limited partnerships. Prerequisites: ACCT 218 and FIN 310; Sophomore, Junior or Senior Standing; declared CoBPA majors only. S.

FIN 370. Student Investment Fund I. 1 Credit.

This is an introductory course to the Student Managed Investment Fund. It examines the issues involved in the management and investment strategies of a portfolio of financial assets. Students are required to attend Student Investment Fund meetings. Student members research prospective stocks, generate reports, make decisions to invest or liquidate, and execute the trades. Any recommendation to buy, sell, or retain a position in a security is presented to all student team members and to the Faculty Advisor. Repeatable up to a maximum of 3 credits. Prerequisite: Investments major or approval of instructor. F,S.

FIN 375. Lending and Liquidity Management. 3 Credits.

This course analyzes the short-term sources and uses of funds with primary emphasis on the management of liquidity in the context of a financial institution. The course also examines the risks and returns in a loan portfolio, particularly loans by financial institutions. Prerequisites: FIN 310; Junior or Senior Standing; declared CoBPA majors only. F.

FIN 397. Cooperative Education. 1-3 Credits.

On-the-job compensated work experience in various areas of Finance. May be repeated to a total of 6 credits. Prerequisites: ACCT 200, ACCT 201, ISBC 117, ECON 201, ECON 202, ECON 210, and approval by department. F,S,SS.

FIN 415. Fixed Income Analaysis and Portfolio Management. 3 Credits.

This course covers characteristics and analysis of fixed-income (or debt) instruments. Types of debt securities examined primarily include corporate (commercial paper, notes, and fixed- and floating-rate bonds without and with various embedded options) and U.S. Government (Treasury bills, Treasury bonds without and with inflation protection, and Agency debt). Those enrolled in the class will be responsible for actively managing a live bond portfolio. Prerequisites: FIN 310, FIN 360 and FIN 370; Junior or Senior Standing; declared CoBPA majors only. S.

FIN 420. Investment Analysis and Portfolio Management. 3 Credits.

Comprehensive study of methods used to evaluate securities. Includes formulation of investment strategy and analysis, design of portfolios for classes of individual investors and institutions, fundamental analysis and portfolio performance evaluation. Extensive use of financial databases and software. Prerequisites: FIN 340 and FIN 360; Junior or Senior Standing; declared CoBPA majors only. F,S.

FIN 430. International Financial Management. 3 Credits.

Financial management implications of exchange risk exposure, accounting conventions and international constraints on capital flows. Other topics include multi-national investment management and related financing problems, taxation and working capital management. Prerequisites: FIN 310 and Junior or Senior Standing; declared CoBPA majors only. S.

FIN 440. Valuing Real Assets and Financial Strategy. 3 Credits.

This course addresses a variety of issues related to valuing real assets, with a large emphasis on using real option valuation techniques such as binomial modeling. Cutting edge software packages are used in a variety of projects and case studies. There is additional emphasis on using real data, such as foreign currency exchange rates, U.S. and foreign interest rates, reported financial indicators, and actual financial statements. Several databases may also be used for obtaining data. Prerequisite: FIN 340; declared CoBPA majors only F.

FIN 450. Financial Derivatives. 3 Credits.

Detailed analysis of major elements affecting market prices of options and futures contracts and analysis of optimal investment strategies involving these and other derivative instruments. Prerequisites: FIN 340 and FIN 360; declared CoBPA majors only F,S.

FIN 460. Managing Financial Institutions. 3 Credits.

Principles of asset/liability and portfolio management as they apply to the balance sheets and income statements of financial institutions. Includes management of assets and liabilities in the context of interest rate risk. Considers gap management, duration, financial futures, interest rate swaps, and securitization with the goal of profit maximation. Prerequisites: FIN 310 and Junior or Senior Standing; declared CoBPA majors only. S.

FIN 470. Student Investment Fund II. 3 Credits.

The Student Managed Investment Fund is a sequence of courses whereby a select group of students manage a live portfolio. The course examines the issues involved in the management and investment strategies of a portfolio of financial assets. It focuses on asset allocation, portfolio monitoring and evaluation, portfolio rebalancing, and investment analysis. The students selected to manage the fund are responsible for the investment decisions involving the composition of the portfolio under the supervision of Finance department faculty. Student members establish the stock selection criteria, research the prospective stocks, generate reports, and make decisions to invest or liquidate, and execute the trades. Oral presentations are required. Repeatable to a maximum of 6 credits. Prerequisites: FIN 310, 340 and 370 and declared CoBPA majors only. F.

FIN 475. Cases in Managerial Finance. 3 Credits.

Introduces students to construction and utilization of financial management decision models using case study examples. Topics evaluated include working capital management, capital budgeting, cost of capital, capital structure, dividend policy, valuation, risk-return, and special topics of financial management. Students are required to develop original simulation models, prepare formal case reports, and orally and visually present their results. Prerequisites: FIN 340 and FIN 360; Junior or Senior Standing; declared CoBPA majors only. F.

FIN 491. Senior Topics in Finance. 3 Credits.

Multiple sections covering different topics may be offered in any one semester. Provides opportunities for in-depth study beyond that of regularly scheduled courses. May be seminars, workshops, or lecturers. Repeatable to 6 credits. Prerequisites: FIN 310; consent of instructor; Junior or Senior Standing; declared CoBPA majors only. F,S.

FIN 492. Readings and Research in Finance. 1-3 Credits.

Designed for students with an interest in finance topics not covered in regularly schedule courses. Repeatable to 6 credits. Prerequisites: FIN 310 and approval by department. F,S.

FIN 497. Internship in Finance. 1-3 Credits.

Guided practical experience in managerial finance, investment management, real estate, and insurance with public and private sector enterprises. Prerequisites: ACCT 200, ACCT 201, ISBC 117, ECON 201, ECON 202, ECON 210, and approval by department. F,S,SS.

Office of the Registrar

Tel: 701.777.2711
1.800.CALL.UND
Fax: 701.777.2696

Twamley Hall Room 201
264 Centennial Drive Stop 8382
Grand Forks, ND 58202-8382