Mendoza School of Business

Finance-Chicago Course Highlights

Financial Statement Analysis I (3 credits)

  • Understanding financial statements (income, balance sheet, equity and cash flow)
  • Financial statement analysis (ratio, common size, segment, and peer comparisons)
  • Credit analysis and in-depth study of capital structure from an investment perspective

Financial Statement Analysis II (3 credits)

  • In-depth cash flow analysis from an investment perspective
  • Accounting for business combinations including joint ventures, affiliates, and acquisitions
  • Analysis of pension liabilities and capital leases
  • Introduction to accounting for foreign exchange transactions and translation

Financial Statement Forecasting (1.5 credits)

  • 10K analyses and financial modeling techniques for Excel
  • Forecasting income statements, balance sheets and cash flow statements
  • Sensitivity and scenario analysis (toggles, data tables, and modeling details)

Corporate Finance (4.0 credits)

  • Corporate governance and policy
  • Cost of capital and capital budgeting
  • Capital structure, security issuance, and dividend payout policy

Investments (3.0 credits)

  • Portfolio theory and asset pricing models (CAPM, APT)
  • Portfolio performance evaluation and market efficiency
  • Introduction to fixed income investments

Corporate Finance Concentration:

Financing the Firm (1.0 credit)

  • Private and public debt market financing
  • Secured and unsecured financing considerations
  • Short- and long-term debt financing

Working Capital Management (1.0 credit)

  • Short-term financing strategies and corporate policy
  • Cash forecasting and banking relationships
  • Short-term investment strategies

Investment Concentration:

Quantitative Investment Strategies (1.0 credit)

  • Introduces two fundamental products in active asset management
  • Locate and convert alphas into investable products
  • Provides a synthesis of major beta products based on research

Mutual Funds: Active Share and Performance (1.0 credit)

  • Overview of equity mutual funds and ETFs
  • Debate active versus passive fund management
  • Measures of active management such as Active Share, tracking errors (volatility), and R2

Trading and Markets (1.0 credit)

Equity Valuation (3.0 credits)

  • Discounted cash flow (DCF) and relative valuation (multiples)
  • Estimating cost of capital inputs and cash flows
  • Forecasting growth and estimating continuing value

Derivatives (3.0 credits)

  • Option pricing models (binomial, Black-Scholes-Merton) and options trading strategies
  • Pricing of futures/forward contracts and futures trading strategies
  • Valuation of swap contracts

Behavioral Finance (3.0 credits)

Mergers and Acquisitions (3.0 credits)

  • Sell-side (auctions, negotiated sales) and buy-side (approach, due diligence, valuation)
  • Deal structure, accounting and regulatory issues, take-over defense strategies
  • Introduction to LBOs and asset restructuring

Strategic Finance (1.0 credit) (offered for both Corporate Finance and Investments concentrations)

  • How entrepreneurs forecast and manage cash and use key metrics to guide performance for new ventures
  • Examine new venture valuation methods
  • Review harvesting strategies for venture investors such as outright sales or mergers and going public via IPOs

Corporate Finance Concentration

Behavioral Finance (1.0 credit)

  • Introduction to behavioral biases and their effects on financial markets
  • Survey evidence and use psychology for alternative theories of financial markets
  • Examine preferences and trading decisions of individual investors

Investments Concentration

Fixed Income Basics (1.0 credit)

  • Introduces fixed income securities and markets
  • Develops tools for valuing fixed income securities and managing interest rate risk
  • Topics include duration, forward contracts, convexity, and hedging

Strategic Finance (3.0 credits)

  • Integration of financial strategy and ethics in a project-based setting
  • Culmination of MSF program curriculum of financial theory and practice
  • Students develop a comprehensive financial strategy and solutions in a group-based project

Course descriptions and credit hours are subject to change.

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