DEPARTMENT OF ACCOUNTING AND FINANCE — FINANCE COURSES

AF 201
Personal Finance

Introduces students to planning and managing personal and family finances. Topics include insurance and estate planning, relationships with banks, issues in home ownership and real estate, the fundamentals of investing in stocks and bonds, tax planning, leasing as compared with buying automobiles, and financing college education. This course cannot be counted toward the finance or accounting concentration in the College of Management.

3 Lect Hrs, 3 Credits

AF 301
Introduction to Financial Management

Introduces financial management (both short term and long term), specifically what an organization invests in, and how the necessary funds are best raised; the course also acquaints students with various kinds of securities and the operation of financial markets and institutions. Specific topics include ratio analysis, working capital management, financial markets and institutions, the time value of money and capital budgeting, the cost of capital, financial leverage and capital structure, and dividend policy.

Prerequisites: AF 211 and 60 credits. Students are strongly recommended to take ECON 101 and 102, MATH 134 and MSIS 111 before taking AF 301.
3 Lect Hrs, 3 Credits

AF 325
Theory of Corporate Finance

Provides a sound understanding of the principles of and analytical techniques used in financial management. The course describes financial decision making by corporations and shows how it can be used to address practical problems and illuminate institutional aspects of the financial world. Topics include review of valuation
concepts, cost of capital, advanced capital budgeting, capital structure theories, dividend policy, IPOs, long-term financing and working capital management.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 335
Investments

Provides the student with an understanding of capital market securities, operations, valuation, and investment techniques. Specifically, the course covers definitions of various investment vehicles, operation of the NYSE and NASDAQ markets, portfolio theory (CAPM and APT), valuation of stocks and bonds, and investor capital allocation decisions, including discussions of mutual fund selection.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 425
Topics in Corporate Financial Management

Builds on the principles and concepts developed in AF 325 and introduces several new topics including real options, risk management techniques, convertible securities, leasing and mergers and acquisitions. It is recommended that students take AF 335 before AF 425.

Prerequisites: AF 325 and 60 credits.
3 Lect Hrs, 3 Credits

AF 426
Financial Modeling

Introduces the principles and techniques for building financial models, especially in an uncertainty framework. Topics include decision support systems, risk analysis and capital budgeting under uncertainty. Integrates financial, accounting and statistical concepts and techniques to construct financial models and to perform analyses using micro-computer based software.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 435
Derivative Securities

Derivative securities are contracts whose payoffs are derived from the outcome of another security or asset price. This course focuses on the valuation and (mis)use of derivative securities. Specifically the course covers: history of derivatives, valuation of forwards, futures, swap and option contracts and the use of derivative securities to hedge financial risk, particularly interest rate and foreign currency risk. It is recommended that students take AF 335 before 435.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 445
Markets and Financial Institutions

Examines the role of financial markets and institutions in the economy. The course focuses on the working of various financial markets and how financial institutions and other users interact with financial markets. Topics include interest rates; term structure of interest rates; money and capital markets; innovations in capital markets; credit risk and asset and liability management; international financial markets; currency fluctuations; and management of currency risk.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 455
International Financial Management

Provides the student with the knowledge and skills needed by managers in organizations active in international trade, facing foreign competition, or involved in foreign direct investment. The course focuses on the unique international variables and constraints which modify single-country financial management concepts. Topics include the determination of exchange rates, forecasting exchange rates, foreign exchange risk management, transfer pricing policies, multinational capital budgeting with cash flows in more than one currency, international financial markets, and country risk in multinational investment decisions.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 475
Real Estate Finance and Investment

Deals with the financing, valuation, and development of real estate investments. The course examines the theoretical and pragmatic models of valuation, the financial structure of successful developments, and the appropriate models of investment choice and portfolio management for real estate investors. It develops an appreciation of the similarities and differences between real and financial assets, and integrates the techniques of real estate analysis with those of corporate finance. Students are expected to participate actively in analyzing real estate investments and developments through case studies, and through interaction with executives from the investment, development, and lending communities.

Prerequisites: AF 301 and 60 credits.
3 Lect Hrs, 3 Credits

AF 478
Special Topics in Finance

Addresses a specific topic in finance. Special topics courses are offered as one-time supplements to the department’s curriculum. Descriptions of special topics courses are available during advance registration.

Prerequisites: 60 credits.
3 Lect Hrs, 3 Credits

AF 485
Small Business Practicum

Through this practicum students have the opportunity to apply financial and general management principles to activities in selected small business concerns. Working in teams with faculty guidance, students offer financial management counseling and technical assistance to small organizations,

Prerequisites: AF 301 and 60 credits. (AF 325, AF 335, and AF 465 are recommended.)
3 Credits

AF 488
Independent Study

A student-initiated research project on a finance topic, supervised by a member of the finance faculty. The course is open to a limited number of students each semester.

Prerequisites: Permission of instructor and 60 credits.
3 Credits, Hrs by arrangement

AF 495
Financial Policy

Utilizes the case study method to apply theoretical concepts and techniques learned in previous courses to the analysis of real situations and practical problems in financial management and policy. Some cases will have a strong international focus. This course is intended as a “capstone” course to be taken after all other concentration courses. It provides an opportunity for reviewing, integrating, and putting into practice the skills acquired in previous courses.

Prerequisites: AF 325 and AF 335 and 60 credits.
3 Lect Hrs, 3 Credits