Finance Concentration MBA Courses

Katz immerses its MBAs in experience-based learning. If you're considering a concentration in finance, find out more about your hands-on valuation training, applied portfolio management practicums, Consulting Field Projects, electives and specialized course work, as well as our Financial Analysis Lab, expert faculty and long line of successful finance alumni. View the course descriptions below and learn more from the finance showcase PDF.

BFIN 2409—Financial Management 1—1.5 credits
The main objective of this course is to gain understanding of the theory and practice of financial decision making. This course develops the tools and framework necessary to address the central question in corporate finance: What investment projects should be undertaken to maximize shareholder wealth? To examine this question, we will learn how to value an uncertain stream of cash flows and apply the concept of the time value of money in valuing bonds 11 and equity. The course covers a number of market-based investment criteria and develops an entity valuation model, based on discounted cash flows (DCF) used for standard capital budgeting decisions. We will conclude with a short introduction to the concept of risk and return, resulting in the cost of capital. We will cover a case discussion on capital budgeting to put our framework in a more realistic environment. Financial Management 1 is a prerequisite for taking Financial Management 2.
Prerequisites: BACC 2401 Financial Accounting and BQOM 2401 Statistical Analysis. These courses can be taken as co-requisites during the same term. Participating in the Financial Management I: Workshop on Time Value of Money is required prior to enrollment.
BFIN 2410—Financial Management 2—1.5 credits
This course builds on Financial Management 1 and develops an asset pricing framework used in corporate finance based on the trade-off between risk and return. We use modern portfolio theory to determine a suitable asset pricing model and arrive at determining the relevant discount rate to reflect the risk associated with the cash flow we focused on in Financial Management 1. Finally, we will address how financing and capital structure choices affect project and firm value using the above techniques and methods. The course will conclude with three valuation methods: WACC, APV, and FTE and an extensive case discussion. Financial Management 1 & Financial Management 2 are prerequisite courses for any other finance elective in the curriculum.
Prerequisites: BFIN 2409 Financial Management 1.
BFIN 2015—Short-Term Finance—1.5 credits
Examines several important short-term financial issues and challenges confronting companies. Topics include cash forecasting and cash management, including a focus on the interactions among current assets and liabilities; budgeting and forecasting techniques and issues; and foreign exchange rate risk and management. Particular emphasis on the organizational tensions, including strategic compromises, that arise in managing working capital and budgets.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2030—Valuation 1—1.5 credits
This course examines the discounted cash flow approach to valuing business firms. Students develop the skills necessary to project free cash flows, estimate the cost of capital, compute terminal values, conduct sensitivity analyses, identify value drivers, and estimate the values of firms. It is a "hands-on" course in which students are required to value an actual company.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2130—Valuation 2—1.5 credits
This course examines a number of topics in the area of business valuation, including alternatives to the discounted cash flow model, intricacies involved in estimates of the cost of capital and terminal values, and valuation of acquisition targets, private companies, financial institutions, foreign companies, and e-commerce companies.
Prerequisites: BFIN 2030 Valuation 1.
BFIN 2031—Creating Value through Restructuring—1.5 credits
Building on capital markets and valuation principles, this course examines how and why different types of corporate restructurings affect firm value. The topics include mergers and acquisitions, leveraged buyouts, leveraged recapitalizations, the use of EVA, divestitures, and bankruptcy as an option to restructure the balance sheet. The readings cover both the academic literature and company-based cases. Students will evaluate the value-creating potential of different financial approaches to corporate transformation from the practitioner’s perspective; and will complete a final team project that incorporates key analytical skills and course concepts.
Prerequisites: BFIN 2410 Financial Management 2 and BFIN 2030 Valuation 1
BFIN 2036—Corporate Finance—3 credits
This course is an introduction to corporate financial management. The course builds on BFIN 2409 & 2410 to provide students with the conceptual framework and analytical tools necessary to appreciate, understand, and analyze the problems facing corporate financial managers. The course consists of four main parts. The first part develops the tools necessary to conduct the analysis of corporate finance problems. These tools include the analysis of data reported on financial statements, building pro-forma financial statements, the basics of put and call options, and an introduction to corporate valuation techniques. The second part of the course examines how managers set the two primary corporate financial policies: capital structure and payout policy (e.g. dividends and share repurchases), and the process of restructuring in financial distress and bankruptcy. The third part of the course analyzes the process of issuing securities in the capital markets, including the role of the investment banker. Finally, the fourth part explores several aspects of mergers and acquisitions, including the motives for these transactions, the structure of the deal, and the role private equity firms.
Prerequisites: BFIN 2410 Financial Management 2
BFIN 2039—Investment Management/Capital Markets—3 credits
The objective of Investment Management/Capital Markets is to provide the student with a theoretical and practical background in the field of investments. The course will cover the major topics of financial markets, portfolio theory, security valuation, capital market equilibrium and risk-return trade-off, performance evaluation, and international diversification. The course is intended for those students who want to become investment professionals or those who want to be wise individual investors. Real-world examples will be given to make connections with the theoretical framework.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2042—Acquisition of Privately Held Companies—1.5 credits
The course will provide an introduction to the acquisition of privately held companies along with strategies for value creation in the acquired business. The course, which is exclusively taught using the case method, takes lessons taught in the valuation courses extending these concepts to the valuation of privately held business, the structuring of the acquisition balance sheet and the execution of the acquisition process. While a discussion of secured financing alternatives will be included, the application of junior capital, both mezzanine debt and equity will be the focus of the course. A risk analysis of the target will be performed and an investment thesis intended to illustrate value creation techniques will be central to each class discussion. Upon completion, students will be better prepared how to assess both operational and financial forms of risk, develop techniques intended to reduce both forms of risk, and consider value creation strategies in marketing, operations, finance and management. Each case will involve a real company acquired over the years by PNC Equity Partner along with actual selling memorandum, diligence prepared by PNC principals, market research firms, accounting firms and law firms employed by PNC as part of their diligence process.
Prerequisites: BFIN 2410 Financial Management 2
BFIN 2043—International Financial Management—3 credits
This course will examine decision-making in international finance via a broad study of the opportunities and problems encountered when investments and business operations across national boundaries. Emphasis will be placed on how conventional financial models require modification in a global context, and on the use of international financial markets to enhance portfolio performance, control risks and maximize firm value. Specific topics include foreign exchange markets, international parity conditions and exchange rate forecasting, exchange rate exposure and hedging, global capital sourcing, multinational capital budgeting, and international portfolio diversification.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2048—Applied Corporate Finance—1.5 credits
Explores a variety of advanced topics in corporate finance, principally through case studies, including non-recourse project finance; dividend policies; leveraged restructuring and the shareholder value implications of increasing debt; financial distress and the challenges of financial management in bankruptcy; issues confronting financial management leadership, including the use of economic value-added programs; and the CFO’s role in the face of ethical challenges.
Prerequisites: BFIN 2030 Valuation 1 is strongly recommended.
BFIN 2051—Introduction to Derivatives—1.5 credits
The purpose of this course is to introduce participants to derivative securities with particular focus on four basic derivatives: forwards, futures, options, and swaps. Toward this purpose, we will examine the structure of these contracts, discuss the techniques used for their valuation, and explore the various uses of these financial products in speculation and risk management.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2056—Derivatives: Applications to Valuation and Value Creation—1.5 credits
Over the past few decades, some of the most interesting developments in finance have been the results of financial engineering. Financial engineering is a process by which quantitative methods are used to design financial instruments and the financial structure of an organization in order to maximize that organization's effectiveness. The purpose of this course is to introduce participants to corporate financial engineering. Toward this purpose, we will explore how and why financial engineering is used in a variety of settings primarily with the use of cases.
Prerequisites: BFIN 2051 Introduction to Derivatives.
BFIN 2060—Independent Study in Finance—variable credits (1.0 minimum)
An independent course of study in finance may be arranged with a faculty member and a student advisor.
Prerequisites: Special permission/faculty sponsorship is required.
BFIN 2068—Markets and Trading—1.5 credits
This course is designed to give participants a broad understanding of the operations of various financial markets with special focus on liquidity, market structure and trading. With this objective in mind, the course will concentrate on the operations of exchanges, trading systems and broker-dealer intermediaries. Participants will be exposed to a range of issues regarding the formulation of trading decisions and market structure design and regulation. Simulation software will be used to provide hands-on experience with making tactical trading decisions in different market structure environments.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2069—Fixed Income Securities—1.5 credits
This course examines the concepts that are most frequently encountered in the market for fixed income securities. Specifically, the course describes the most important fixed income securities and markets and develops tools for valuing these securities and managing their interest rate and credit risk. Historically, “fixed-income” refers to securities which promise fixed cash flows over their lives such as a fixed-rate coupon bond. Now, it is generally accepted that a fixed income instrument is one whose value is driven by the level of interest rates and/or the value of a related underlying asset. This classification would include floating rate bonds, callable bonds, bond futures, bond options, caps, floors and collars, interest rate swaps, credit derivatives and asset-backed securities. The importance of understanding fixed income securities has been highlighted by the events that have unfolded over the last two years to create the credit crisis of 2007 where losses may top $1 trillion by the end of 2008. The losses have been attributed to a number of factors including errors in assigning credit ratings, valuation uncertainty, errors in valuation, complex security design and lack of transparency. The purpose of the course is to provide participant with the ability to qualitatively and quantitatively analyze the impact of these factors on global markets.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2123—Commercial Banking—1.5 credits
Examines the role commercial banks play in facilitating the flow of capital between providers of capital (depositors) and users of capital (borrowers). Explores why banks may offer benefits as intermediaries in capital flow transactions; and how the emergence of capital adequacy is altering the loan market. The key focus of inquiry is the identification and effective management of risk in commercial bank-facilitated capital flows. Transactions are examined from the perspectives both of the banker and of the customer. Special attention is paid to the radical restructuring of the banking industry now underway.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2124—Investment Banking and Venture Capital—1.5 credits
This course examines the impact on capital and capital structure strategies of investment bankers and venture capitalists. We will assess the impacts of recent rapid changes in the global capital markets and the roles of these specialized intermediaries and investors. We will analyze the risk/reward paradigms of venture and private equity investors, and the power and influence of investment banks in shaping the size and direction of capital flows. We look at how VCs value and execute deals; and at how investment banks bring value through a variety of transactions and services. The changing role of financial intermediaries is a theme that carries through the Financial Institutions module.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2140—Real Estate Finance—1.5 credits
Real estate represents the largest asset class in the world and is historically the asset most closely associated with wealth. Our objective is to understand the financial characteristics of income producing real estate by focusing on capital costs, cash flow characteristics, discount rates, exit values, and required rates of return. We will explore some of the unique characteristics that shape the economic performance of real estate assets. We will deploy a set of analytical tools to model potential economic outcomes of real estate investments; review the most common sources of capital deployed in income producing properties; and explore how securitization and secondary markets have revolutionized financing approaches, not always with positive results.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2145—Financial Modeling—3 credits
The course will apply finance theory to solve various problems in financial management and investments. It will take a hands-on approach in building financial spreadsheet models using Microsoft excel. Students will learn to address issues that arise in various areas of financial analyses. These issues include but are not limited to discounted cash flow valuation, cost of capital estimation, asset return calculations, portfolio theory, index models, option pricing models, bond pricing and investment performance analysis.
Prerequisites: BFIN 2410 Financial Management 2.
BFIN 2555—Practicum in Portfolio Management and Security Analysis—3 credits – applied during fall or spring term of student’s choice.
The practicum is an experiential learning tool in which students manage an investment portfolio. The practicum is designed to expose students to “real world” valuation estimation and portfolio management. Through the collection of geographic, industry specific, and firm specific information, the student-managed investment fund is expected to develop an informational advantage in securities with minimal or no analyst following. The students will apply valuation techniques learned in their coursework to real world companies. They will also measure and manage the risk of the portfolio and determine the risk adjusted performance of the portfolio.
Prerequisites: BFIN 2410 Financial Management 2 and BFIN 2039 Investment Management/Capital Markets and BFIN 2030 Valuation 1. An application process is required to gain enrollment permission; please see your academic advisor for obtaining permission and/or a waiver for the requisite coursework.