Basic principles of financial accounting, involving the consecution/interpretation of corporate financial statements. prereq: MBA or Mgmt Sci MBA Student

This course is required for all MBA students because of the financial implications of decisions across all departments and disciplines in business. Managerial decisions can be broken down into two main categories: how to raise capital and how to employ capital. The decisions managers make in this context can add or destroy value. With this context in mind, the course provides students with an understanding of financial markets and the main types of securities that are issued by corporations. The course will leverage basic statistics in understanding of risk of a security as a stand-alone investment and as part of a well-diversified portfolio to provide an understanding of how risk affects required returns of investors. The course emphasizes the concept of time value of money as a basis for decision making. Managers make decisions that affect the cash flows of the firm; the course provides students with a context for thinking about forecasting cash flows, discounting cash flows, and assessing whether the decisions they are considering are value-added for the firm. prereq: MBA 6031 (equiv. is also MBA 6030 before course number change in Fall 2022), MBA student

This class introduces the tools and concepts needed to analyze fixed income securities. Topics include the pricing and hedging of fixed-rate Treasuries, floating rate bonds, bonds with embedded options, defaultable bonds, mortgage-backed securities and their derivatives, inflation-indexed bonds, duration analysis, and the Federal Reserve?s impact on interest rates. This course is extremely computationally intensive. Most of the assignments entail statistical modeling via regression analysis on historical data such as the term structure of interest rates, credit spreads, and other fixed income instruments. We also investigate how well future interest rates can be forecasted using forward rates and other observables. Advanced mathematical techniques such as principal component analysis and attribution analysis are investigated. Stochastic modeling of interest rate dynamics via Brownian Motion and Monte Carlo analysis is also introduced. Every class begins by discussing current headline news regarding fixed income markets, and how they relate to the concepts being taught. prereq: MBA student, MBA 6231 (previously MBA 6230)

Introduces analytical concepts used to manage security portfolios from perspective of an institutional investor. Market microstructure. Margin purchasing, short selling. Portfolio risk management, risk/return tradeoffs, strategic/tactical asset allocation, active versus passive management. Portfolio revision, performance evaluation. prereq: MBA 6121 (previously MBA 6120), MBA 6231 (previously MBA 6230), MBA or Mgmt Sci MBA student

Splitting risks. Redirecting risks to investors able to analyze and take on those risks. Reasons for development of securitization. Products, their similarities in character. How to build simple models and analyze examples of actual securitized liabilities. prereq: FINA 6121, MBA or Mgmt Sci MBA student

Psychology/realistic settings that guide/develop alternative theories of financial market. How behavioral finance complements traditional paradigm on investors' trading patterns, behavior of asset prices, corporate finance, various Wall Street institutions/practices. prereq: MBA or Mgmt Sci MBA student

This course explores financial options from the perspective of a corporation, including what financial options are, how they work, and how they are frequently used to pay employees and managers. Further applications will be explored, including how options can be used as tools to better understand corporate financing and project selection decisions. prereq: MBA 6231 (previously MBA 6230)

Virtually all companies?from small privately held companies to large public companies?are involved in international trade, even if only sourcing raw materials and components internationally. The advent of robust e-commerce websites has further enabled companies of all sizes to actively participate in international trade. This course explores the nature, purposes, and risks of international trade by multinational companies, and the relevant capital budgeting processes and international financing tools needed to facilitate international trade. Students will gain skills in international investment analysis, capital financing techniques, capital budgeting for international projects, and international trade risk management. Students will examine barriers to international capital flows, and study the financial instruments used to overcome these barriers, focusing on the decisions made by multinational enterprises. Prereq: MBA 6231 (previously MBA 6230)