Finance

• BUS–F 228 Introduction to Investment Banking (1.5 cr.) Elective credit only. This is a careers-based course that broadly covers the securities industry and institutional finance as a whole, including venture capital, private equity, mezzanine investing, and the public equity and debt markets. Specific to this learning is the role of the investment banking firm within institutional finance including corporate advisory, capital markets, research, sales and trading, and private wealth management. Although many topics of corporate finance are integrated into the course, the focus is conceptual, not on the applications emphasized in 300-level and 400-level finance courses. Serves as a foundation for F428 Investment Banking I, and F429 Investment Banking II, and F390 Excellence in Investment Banking Seminar.

• BUS–F 260 Personal Finance (3 cr.) Financial problems encountered in managing individual affairs: family budgeting, installment purchase, insurance, and home ownership. No credit for juniors and seniors in the Kelley School.

• BUS-F 262 Financial Markets (3 cr.) This course provides an overview of financial markets, including stock markets, bond markets, derivative markets, and active management markets. Specifically, it examines portfolio diversification, risk and return, mutual fund performance, market efficiency, bonds, options, and futures. No credit for juniors and seniors in the Kelley School.

• BUS–F 300 Introduction to Financial Management (3 cr.) P: A200 or A201 or A202. Only for non-business majors.  Broad survey of finance for non-Kelley School students. Topics include the determinants of interest rates and the time value of money; the sources and uses of financial information; the structure, role, and regulation of financial markets; monetary policy; the pricing of risk in financial markets; goals of investors; and how firms manage their financial affairs, including planning, budgeting, and decision making. Not open to business majors. No credit toward a degree in business. Students may not receive credit for both F300 and (F370, F304, or F301).

• BUS–F 303 Intermediate Investments (3 cr.) P: F370 with a grade of C or better. Part of the finance major core. Rigorous treatment of the core concepts of investments for finance majors. Covers portfolio optimization; examines the pricing of equity, fixed income, and derivatives; and analyzes the degree of market efficiency. Makes extensive use of spreadsheet modeling to implement financial models. Serves as a foundation for all 400-level finance electives.

• BUS–F 304 Financial Management: Honors (3 cr.) P: P: A100, A201, A202, G202, K201, L201, X104, X204, X201, X220, ECON-E 201, ECON-E 370, ENG-W 131, MATH-M 118, MATH-M 119 (all with grades of C or better) and admission to the Business Honors Program. C: I304, J304, M304, and P304; students are administratively enrolled. Part of Honors I-Core. Broad survey of finance for all honors business students. Provides a conceptual framework for a firm’s investment, financing, and dividend decisions; includes working capital management, capital budgeting, and capital structure strategies. Students may not receive credit for both F304 and (F370 or F301 or F300).

• BUS–F 305 Intermediate Corporate Finance (3 cr.) P: F370 or F304 with a grade of C or better. Part of the finance major core. Rigorous treatment of the core concepts of corporate finance for finance majors. Covers capital budgeting, the valuation of firms, and capital structure and payout policies. Makes extensive use of spreadsheet modeling to implement financial models. Serves as a foundation for all 400-level finance electives.

• BUS–F 307 Working Capital Management (3 cr.) P: F370 or F304 with a grade of C or better. Emphasizes the set of decisions and problems that financial managers face in determining short-term financial policy, financial diagnostics, and operations of the company. Major topics include identifying working capital elements and their relationships to company operations, financial analysis, cash forecasting, banking relations, cash-flow systems, and short-term investment and borrowing strategies.

• BUS–F 317 Venture Capital and Entrepreneurial Finance (3 cr.) P: F370 or F304 with a grade of C or better. Covers the private equity and private debt markets that service smaller entrepreneurial firms. Specific topics include: (1) the financial contracting associated with the provision of external finance to a small informationally opaque firm, (2) angel finance and the formal venture capital market, (3) commercial banks and commercial finance companies, and (4) the financial issues associated with a leveraged buyout.

• BUS–F 335 Security Trading and Market Making (3 cr.) P: F370 or F304 with a grade of C or better. Theory and practice of securities trading at exchanges around the world; how trading and the design of markets affect liquidity, informativeness, transparency, volatility, and fairness. Analyzes alternative trading strategies and the cost of trading. Examines innovations in security exchanges and regulatory policy, and provides hands-on trading experience using realistic trading simulations.

• BUS–F 370 Integrated Business Core—Finance Component (3 cr.) P: A100, A201, A202, G202, K201, L201, X104, X204, X201, X220, ECON-E 201, ECON-E 370, ENG-W 131, MATH-M 118, MATH-M 119 (all with grades of C or better). C: I370, J370, M370 and P370. Students must apply online (http://kelley.iu.edu/ugrad/apps/icore_info.cfm) to take I-Core and, after getting permission, enroll using BUS-BE 370. Cross-functional survey of business management. The finance component provides an introduction into basic principles and perspectives of financial thought. Covered topics include the time value of money, risk and return, interest rates and debt risk, capital budgeting, security pricing, and portfolio concepts. Includes a cross-functional case done in teams. Students may not receive credit for both F370 and (F304 or F301 or F300).

• BUS–F 390 Topics in Finance (1.5–3 cr.) P: F370 or F304. Course content varies. A common topic is Excellence in Investment Banking Seminar (EIBS) - an alternative to The Investment Banking Workshop (F428-429) without the stringent application procedure for F428-429.

• BUS–F 402 Corporate Financial Strategy and Governance (3 cr.) P: F303 and F305 with grades of C- or better. Advanced treatment of corporate financial management. Covers all major areas of corporate financial decisions: capital budgeting, dividends, capital structure, cash-flow projections, mergers, and acquisitions.

• BUS–F 408 Real Options and Strategic Capital Investment (3 cr.) P: F303 and F305 with grades of C- or better. Covers how companies should evaluate projects and business relationships when they are faced with conditions of uncertainty but yet have the potential to learn and adapt as the project or relationship unfolds and uncertainty is resolved. This topic has been traditionally addressed through the use of decision-tree models and discounted cash flow analysis. It is now being reshaped by the innovative use of options methodology. The course also provides an increased understanding and proficiency in the use of spreadsheet modeling and simulation programs.

• F419 Behavioral Finance (3 cr.) P: F303 and F305 with grades of C- or better. How human psychology influences the decisions of investors, markets, and managers. Learn how to avoid systematic investment errors, critically evaluate evidence of apparent anomalies in financial markets, and how to escape decision traps that afflict corporate managers.

• BUS–F 420 Equity and Fixed Income Investments (3 cr.) P: F303 and F305 with grades of C- or better. A detailed examination of the management of equity and fixed income investments. Covers analysis of individual securities, formation of these securities into portfolios, and use of derivative securities to modify the return/risk profiles of more traditional stock and bond portfolios.

• BUS–F 421 Derivative Securities and Corporate Risk Management (3 cr.) P: F303 and F305 with grades of C- or better. Advanced treatment of options, futures, and other derivative securities. Detailed description of the entire spectrum of derivative products. Theoretical and numerical valuation of derivative securities. How corporate risk managers use derivatives to hedge exchange rate risk, interest rate risk, commodity risk, credit risk, etc.

• BUS–F 428 Investment Banking (1.5 cr.) P: Consent of instructor. This course first introduces students to the history and structure of the investment banking industry. The remainder of the semester is spent developing the skills necessary to fill the basic responsibility that a summer intern faces at an investment banking firm. Specifically, these are spreadsheet skills focusing on pro-forma statement preparation of new issues and pro-forma statements of merged firms. In addition, students are introduced to tax implications of mergers and the due diligence requirements in assessing new issues. No credit toward finance major requirements.

• BUS–F 429 Investment Banking II (1.5 cr.) P: F428 or consent of instructor. This course continues the development of students’ spreadsheet skills and their knowledge base of deal structures. There is an emphasis on developing presentation and writing skills. The major part of the course involves the students developing a complete oral and written presentation of a deal: a merger, a new issue, a complex refinancing, a solution to a complex hedging problem, or a portfolio structure for a wealthy client. No credit toward finance major requirements.

• BUS–F 446 Banking and Financial Intermediation (3 cr.) P: F303 and F305 with grades of C- or better. The main topics are (1) the economic role of financial intermediaries, with an emphasis on commercial banks; (2) the evolution of markets in which banks and other financial intermediaries operate; and (3) the regulation of commercial banks and other financial institutions.

• BUS–F 470 Current Topics in Finance (3 cr.) P: F303 and F305 with grades of C- or better. Course content varies. Course is offered only occasionally.

• BUS–F 490 Independent Study in Finance (1–3 cr.) P: Consent of department chairperson and of instructor. Supervised individual study and research in student’s special field of interest. The student proposes the investigation desired and, in conjunction with the instructor, develops the scope of work to be completed. Comprehensive written report required.

• BUS–F 494 International Finance (3 cr.) P: F303 and F 305 with grades of C- or better. Covers the international dimension of both investments and corporate finance. Develops strategies for investing internationally, including hedging exchange rate risk, adjusting to client preferences and home currencies, evaluating performance, estimating a corporation’s exposure to real exchange rate risk, strategies to hedge risk or to dynamically adjust to shocks, and reasons for a corporation to hedge. Also covers international capital budgeting, multinational transfer pricing, and international cash management.

Real Estate

• BUS–R 300 Principles of Real Estate (3 cr.) For students who plan to take only one course in the area of real estate. Topics include real estate law, brokerage, property management, appraising, mortgage finance, and investment analysis. No credit for juniors or seniors in the Kelley School.

• BUS–R 305 Introduction to Real Estate Analysis (3 cr.) P: Econ-E 201 and Kelley School admission. For students who want to take additional real estate courses. Topics include real estate law, brokerage, property management, appraising, mortgage finance, and investment analysis. Emphasis is on the analytic techniques applicable to real estate.

• BUS–R 440 Real Estate Appraisals (3 cr.) P: (F370 or F304) and R305. Offered in fall semester only. Techniques and methods of appraising real property, with an emphasis on income property. Covers concepts and analytic techniques used to estimate the market value of real estate. Course content is similar to that which a professional appraiser must learn.

• BUS–R 443 Real Estate Finance and Investment Analysis (3 cr.) P: (F370 or F304) and R305. Offered in spring semester only. Application of financial concepts and techniques to the analysis of real estate financing and investment alternatives. Computer analysis and case studies are used.

• BUS–R 490 Independent Study in Real Estate and Land Economics (1–3 cr.) P:  Consent of department chairperson and of instructor. Supervised individual study and research in student’s special field of interest. The student proposes the investigation desired and, in conjunction with the instructor, develops the scope of work to be completed. Comprehensive written report required.