MBA Finance Courses
All MBA courses are 2.0 credit hours on a 7-week schedule except where noted.
FIN 60210 Microeconomic Analysis
This course covers microeconomic concepts relevant to managerial decision-making. Topics include demand and supply analysis, consumer demand theory, production and cost analysis, externalities, public goods, risk preferences and market structures. Applications are used for an understanding of the economic tools and their potential use for solving real-world problems.
FIN 60220 Macroeconomic Environment
Students will be provided the foundation to understand the U.S. and global economic environment in which managers make business and investment decisions. This foundation includes an analytical as well as practical understanding of the economic determinants of gross domestic product, growth rates, unemployment rates, inflation, productivity, wages, imports, and exports in the short-and long-run. The role of government policies, including Federal Reserve policy, spending, and taxation, are also discussed.
FIN 60400 Finance I
Creation of shareholder value should be the primary focus of the finance function within any organization. Identification of the key drivers that create shareholder wealth is a critical step in defining and implementing corporate strategy. This course provides an in-depth, quantitative examination of the principles of financial decision-making. Students will learn the concepts of value maximization, mathematics of finance, valuation of financial securities, capital investment evaluation, the estimation of required rates of return and financial statement analysis.
FIN 70230 Business Forecasting and Data Mining
This course develops the tools forecasters use to generate and evaluate forecasting models for both the economy and the firm. In addition to classical forecasting tools, the course also uses data mining and extremely large data sets for prediction. The student will make extensive use of commercial software in applying these tools to real-world situations.
FIN 70330 Commercial Banking
The objective of this course is to give the student a working knowledge of how a commercial bank is managed. The student will study bank management from the perspective of a chief executive officer. When completed, the student will have a macro understanding of the industry and the challenges facing senior management of a commercial bank, with emphasis on the current regulatory environment, capital ratios, liquidity management and the extension of various kinds of credit. The course will look at large, multinational banks as well as regional and local banks, and will include guest speakers from several banks and a corporate user of banking services.
FIN 70400 Corporate Restructuring Mergers & Acquisitions
This course will facilitate understanding of corporate merger and acquisition activity, restructurings, and corporate governance. This includes exploring the theory and evidence regarding these topics; the motives for transactions, the sources of value added, and managerial incentives to engage in or resist these activities. Focus will be given to the valuation of merger targets and synergies, financing methods, director duties in change of control situations, regulations, and merger contract negotiations.
FIN 70410 Mergers and Acquisitions Practicum
This course is designed to teach the science and art of M&A transactions from the point of view of an investment banker. The student's knowledge of basic finance and accounting principles from previous coursework will be applied, and will focus on understanding the practical aspects of originating, executing, and closing M&A transactions. The course will examine in depth the fundamental theories behind valuation as well as take theory into practice by creating the financial models used in the core M&A valuation methodologies such as comparable companies analysis, comparable transaction analysis, DCF, LBO, and merger consequences. The course will also provide topical overviews of M&A finance, due diligence, and transaction mechanics (e.g., accounting, tax, legal.)
FIN 70430 Financing the Corporation
This course will focus primarily on how corporations make financing decisions to raise money in various ways to meet their funding needs. The course will cover debt financing from several perspectives including public vs. private, secured vs. unsecured, short-term vs. long-term, fixed vs. floating and US dollar vs. foreign currencies. A major portion of the course also deals with hedging decisions and the use of various derivative instruments to meet those needs.
FIN 70440 Financial Policy
This course provides a survey of corporate financial policy. Its target audience is first-year or one-year students who have taken investments. We cover some of the classic topics of corporate finance: dividend policy, capital structure, costs of issuing securities, the maturity structure of debt, the interrelationships between financial policy and corporate governance, and risk management. This is not a tools course. We use financial theory and the results of empirical research to provide ways to think about and approach various financial decisions. Emphasis is on learning the relevant concerns and issues for financial decisions.
FIN 70450 Bond Issue Process
This course will primarily concern the issuance of a "mock" corporate bond, with the process being as "real life" as possible, including the involvement of a major investment banking firm in the process. This will involve an initial in-class "pitch" by the investment bank and subsequent weekly conference calls, leading up to the launch of the issue. The transaction will include a swap of some sort, either interest rate or cross currency. Each member of the class will act as a financial analyst for the issuer and be required to take an active role in the process.
FIN 70460 Working Capital Management
This course emphasizes the set of decisions and problems that financial and operating managers face in determining short-term financial policy, setting terms when structuring contracts and deals, and managing business processes 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.
FIN 70490 Economic Incentives in Contracts
This is a course on financial contracts with an emphasis on investor protection. The main focus of the course is on understanding underlying principles of contracts and developing skills to apply them to various corporate finance problems. We will explore how corruption, incentives, monitoring, discretion, limited liability, threshold behavior, hold up problem, and legal environments that influence financial contracts. Applications include compensation contracts, free cash flow problems, financial crisis, bank lending, bankruptcy, corporate control, and spinoffs. Through these examples, students will hopefully walk away with the ability to recognize pitfalls that appear in daily business activities, and thereby become better managers or professionals in a variety of business activities.
FIN 70500 Multinational Financial Management (Not currently offered)
This course deals with the elements of the international business environment and their effect on the resource allocation decisions of the multinational manager. The course focuses on the corporate decision-maker, his or her analysis of the multinational environment, anticipation of the firm's interaction with that environment and the use of decision models to select among alternative courses of action.
FIN 70510 Applied Global Money Management
This course provides an opportunity to blend the theory of international investments with the practical demands of managing a "live" portfolio of international equity and bond investments. Academic objectives include developing an understanding of the process of establishing and implementing a portfolio strategy; allocation of assets between equities and fixed income; equity valuation of multinational firms; forecasting countries' macroeconomic outlooks; foreign exchange rate forecasting; and evaluation of a portfolio's performance.
FIN 70520 Funding New Ventures
This course examines financing the start-up of a new venture. Topics we will discuss in detail include bootstrapping, the characteristics and merits of financing with equity and debt, venture capital and angels. Students will learn how to prepare a financial plan including projecting sales and capital expenditures, designing pro forma income statements, balance sheets and sources and applications of funds statements.
FIN 70600 Finance II
This course covers topics that are important for all MBAs to understand. These topics include theory, empirical results, and institutional aspects of finance. Because this is a core course taken by almost all two-year MBAs, the intention is to focus on principles and fundamentals rather than details. The course covers some of the most important and powerful ideas in finance. For example, it covers three sets of ideas that each earned the Nobel Prize in economics for their authors. By understanding these principles and how to apply them, you will be more effective business professionals no matter what your area of specialization.
FIN 70610 Equity Valuation
The objective of this course is to develop a detailed understanding of the tools used by market professionals and corporate managers to analyze the value of companies and stocks. The central theme of the course will be the pricing of equity securities using discounted cash flow and relative valuation techniques. After completing this course, students should be able to identify and interpret the key value drivers for a firm or industry, develop quantitative models for firm and equity valuation based on DCF and multiples, and present firm and equity valuation analyses in a professional manner.
FIN 70620 Options Markets
This course examines options markets, providing rigorous training to prepare students for employment with firms where derivatives are either of primary importance (e.g., banks, trading firms) or secondary importance (e.g., corporations having interest rate or foreign exchange exposure that requires hedging). Topics include fundmental pricing relations and models (e.g., arbitrage bonds, the Black-Scholes-Merton, and binomial models), trading strategies (e.g., covered calls, protective puts, spreads, straddles, and strangles), and risk management. The emphasis is on financial derivatives for which the underlying assets are stocks, bonds, or foreign exchange.
FIN 70630 Futures Markets
This course examines future markets, providing rigorous training to prepare students for employment with firms where derivatives are either of primary importance (e.g., banks, trading firms) or secondary importance (e.g., corporations having interest rate or foreign exchange rate exposure that requires hedging). Topics include fundamental pricing relations and models (e.g., the cost of carry model), trading strategies (e.g., cash and carry trades, program/algorithmic trading, and portfolio insurance), and risk management. The emphasis is on financial (as opposed to commodity) derivatives for which the underlying assets are stocks, bonds, or foreign exchange.
FIN 70640 Applied Investment Management - 6.0 credit hours
The Applied Investment Management provides an opportunity for students to blend the theory of investments with the practical demands of hands-on investment management. The practical objectives are achieved by hands-on management of a real portfolio. Periodically, guest speakers who are security analysts and/or portfolio managers are invited to share practical insights on the investment management process.
FIN 70650 Fixed Income Securities I
The objectives of this course are to describe important fixed income securities and markets, and develop tools for valuing basic fixed income securities and managing interest rate risks. The course covers securities such as coupon bonds, forwards, floating rate notes, swaps and corporate bonds, and includes topics such as yields versus rates of return, the repo market, duration and convexity, hedging by immunization or matching, credit risk, valuation by no arbitrage (i.e., replication). This course can be continued in Fixed Income Securities II.
FIN 70660 Advanced Derivatives and Risk Management
This course provides rigorous training to prepare students for employment with firms where derivatives are either of primary importance (e.g., banks, trading firms) or secondary importance (e.g., corporations having interest rate or foreign exchange exposure that requires hedging). Topics include swaps, interest rate forwards and options, advanced derivative strategies, exotic and credit derivatives, financial risk management techniques, and organizational risk management. One novel feature of this class is that each student must choose a derivatives topic of personal interest, analyze it in depth, and then present his/her analysis to the class.
FIN 70670 Investments
This course follows the second MBA core finance course, which covers the traditional investment topics of portfolio theory, the Capital Asset Pricing Model, and market efficiency. This course builds on that background by focusing primarily on the major different types of investments such as stocks, bonds, and options. For each investment type, the course covers terminology, mechanics, pricing, uses, and risk analysis. In addition, it covers how secondary markets work to facilitate trading securities.
FIN 70680 Trading and Markets
This course examines the general nature of organized trading by examining how bid and offer prices are determined, how market rules evolve, and what markets should be built. While markets for products and services are discussed, the focus is on the trading of financial securities. Existing centralized equity exchanges face competition from new alternative trading systems made possible by today's information technology. This course also examines the impact and implications of this dynamic.
FIN 70690 Investment Principles (One-Year MBA Students only)
This course is an introduction to investments and is intended to develop critical thinking and problem solving skills within the context of investments. The primary objective in this course is to learn the basic concepts and principles of financial analysis from a professional investor's point of view. The course provides an overview of various financial instruments and the marketplaces in which they trade. The course also describes the theory and application of bonds, stocks, portfolio analysis, investment companies, alternative investments, and derivatives. It is meant to prepare students for other investment courses such as Fixed Income, Equity Valuation, Trading and Markets, Options, Futures, and AIM. In addition, it will help prepare the student to take the Chartered Financial Analysts (CFA) exams.
FIN 70700 Real Estate Fundamentals
In contrast to academic disciplines such as physics, history, or psychology, real estate as a course of study is about the application of many disciplines (law, architecture, engineering, finance, urban economics, and ecology) to the processes of private decision-making and public policy involving land use. Real estate can be taught from many perspectives and real estate decision-makers, regardless of their area of expertise, must understand the institutional background in which real estate decisions are made. Real Estate Fundamentals is a first course in real estate studied in the context of economic decision-making. The course objectives are two-fold: i) to provide institutional background (legal, regulatory, markets, etc.) and economic foundations for those whose careers may be in real estate-related areas; ii) to prepare students for more advanced study in real estate economics. The course coverage will include legal elements of property ownership, the real estate regulatory process, methods of real estate valuation, real estate sales processes, mortgage markets and financial contracts, leases and income generation, taxation, and elements of real estate development.
FIN 70710 Real Estate Valuation and Income Property Investments
The objectives of this course are to introduce students to valuation and investment models used in residential and commercial real estate, with emphasis on applications to commercial real estate investment. We will consider traditional methods used in appraisal: market comparables, cost methods, and income-based methods, in both residential and commercial real estate valuation analysis. The role of real estate assets in multiclass portfolios will be addressed. Standard software tools for valuation analysis will be considered. Corporate real estate finance is a growing yet sometimes overlooked component of corporate finance, so we will consider real estate investment within the corporate finance context.
FIN 70720 Real Estate Finance & Capital Markets
The objectives of this course are to introduce students to markets for real estate capital. We will examine in detail primary real estate mortgage markets for both residential and commercial property and will consider the investment characteristics of mortgages in terms of standard bond market metrics. We will examine secondary markets for mortgages, particularly the pass-through and structured mortgage-backed securities markets. Construction and other alternative lending markets will be considered. Private and public equity markets will be addressed; we will study equity fund and joint venture structures and real estate investment trusts. we will address risk and return from a capital markets (portfolio) perspective and examine the performance of real estate portfolios and real estate investment trusts.
FIN 70820 Mathematical Methods in Financial Economics - 4.0 credit hours
This interdisciplinary course is designed to foster interaction between finance and mathematics at Notre Dame. For each unit of the course, the mathematical components of the financial problem as well as the problem itself will be addressed. The following topics in financial economics will be included in the course: Arbitrage pricing of financial assets, Pricing of stock options, Risk assessment, Portfolio decisions and risk management and Equilibrium pricing of financial assets. These topic will be addressed in continuous and discrete time. The necessary mathematical background from differential equations and probability theory will be provided. Students will work in interdisciplinary groups to develop final projects which use quantitative methods to address current issues in financial economics such as what risk management techniques led to the sub-prime lending crisis.
FIN 70940 Quantitative Portfolio Strategies
This course introduces students to advanced topics in investment. The building blocks of the course include portfolio theory and factor models, active quantitative investment strategies based on time-series and cross-sectional return predictability, market frictions (transactions costs, liquidity, short-sale constraints, tax, etc.), and major institutional players. Special topics change from one year to another to reflect recent trends and practices in the industry.
FIN 70950 Fixed Income II
This course is a continuation of Fixed Income Securities I. The objectives are to describe basic interest rate models and tools to valuing interest rate derivatives and mortgage backed securities. The course covers topics such as risk-neutral probabilities, dynamic trading strategies, interest rate modeling using calibration, hedging using models, and valuing corporate bonds using a structural model. It covers securities such as options on yields, callable bonds, swaptions, mortgage pools and pass-throughs, CMO's, caps floors and collars.
FIN 70990 Behavioral Finance
This course provides an understanding of the behavioral biases that individuals exhibit and the effects of these biases on financial markets. Standard finance theory assumes that individuals such as investors or financial managers are rational, expected utility maximizers. Behavioral finance argues that some financial phenomena can be better understood by admitting that some investors are not fully rational and arbitragers have limits to how aggressively they can trade. A number of stock market anomalies will be presented and analyzed.
FIN 70620 Security Analysis Practicum - 1.0 credit hour
Students of this course will combine top-down and bottom-up analysis to make equity investment decisions. You will be asked to evaluate a company's market opportunity and competitive advantage. Using the company's financial statements, you'll analyze financial trends to determine if your thesis is supported by the numbers. You'll also learn to discern key lever points in the business model. Students will be required to build an earnings model in an Excel spreadsheet. The course will focus on small and micro-cap stocks.
FIN 70630 Security Analysis Practicum II - 1.0 credit hour
A continuation of FIN 70620, students of this course will combine top-down and bottom-up analysis to make equity investment decisions. You will be asked to evaluate a company's market opportunity and competitive advantage. Using the company's financial statements, you'll analyze financial trends to determine if your thesis is supported by the numbers. You'll also learn to discern key lever points in the business model. Students will be required to build an earnings model in an Excel spreadsheet. The course will focus on small and micro-cap stocks.