2003-04 Undergraduate Catalog -

Professors: Andrew Chen, Albert Niemi, Marc Reinganum, James Smith, Rex Thompson, Michel Vetsuypens; Associate Professors: Jeffrey Allen, Chun Lam; Assistant Professors: Evrim Akdogu, Venkat Eleswarapu, Tao-Hsien King, Peter MacKay, Sara Moeller, Kumar Venkataraman; Lecturers: Michael Davis, Jeffrey Hart.

See requirements to major in Finance in the "Programs of Study" section.

3300. Special Topics in International Finance. Offered through SMU International Programs. Prerequisite: Junior standing.

3320. Financial Management. Survey of concepts, practices, and problems surrounding financial markets, securities, and decision-making. Includes time value of money, market efficiency, evaluation of securities, and capital budgeting. Prerequisites: Calculus, ECO 1311, 1312; ACCT 2311; and ITOM 2305 or STAT 2301/2331. Students may not receive credit for this course and ECO 3368. Economics courses will not fulfill B.B.A. requirements.

3330. Money and Capital Markets. Analyzes the structural interrelationships among the important participants in the U.S. financial markets. Topics discussed include flow of funds, determinants of interest rates, monetary policy and interest rates, money and capital market instruments, and problems in managing financial institutions. Prerequisite: FINA 3320. Students may not receive credit for this course and ECO 3355.

4325. Advanced Financial Management. In-depth analysis of capital budgeting, cost of capital, sources of capital open to the firm, capital structure, dividend policy, mergers, and bankruptcy, in a combined lecture-case format. Prerequisite: FINA 3320..

4326. Investment Analysis and Portfolio Management. Evaluation of the interactive effects of economic, industry, company, and market considerations on the risk and return of individual assets. Analysis of the interrelationships of risky assets when combined in portfolios; asset pricing theory and implications. Prerequisite: FINA 3320. Students may not receive credit for this course and ECO 4378.

4327. Speculative Markets (Spring Only). Introduction to analysis of speculative securities such as options and futures. Underlying theories explaining speculative markets in which such securities are traded are evaluated. Strategies such as hedging and arbitrage are discussed. Prerequisite: FINA 4326.

4328. Management of Financial Institutions. (Spring only) Management of assets, liabilities and capital accounts of financial institutions in general and commercial banks in particular. Emphasis on an understanding of the interrelationship among profitability, liquidity and capital adequacy. Simulations and/or cases are used to illustrate the concepts. Prerequisite: FINA 3330.

4329. International Finance. Analyzes the effects on financial transactions of dealing in foreign markets. The course considers international financial markets and such issues as interest rate differences between countries and spot and forward transaction in foreign currencies. Major emphasis is given to the impact of international operations for the corporate financial manager. Prerequisite: FINA 3320.

5325, 5326. Independent Studies in Finance.

5331. Advanced Concepts in Financial Management (Fall only). Selected advanced topics in corporate finance such as cost of capital, efficient markets, acquisitions, cash management, and applications of options concepts. Combined lecture-case format. Topics will be made available to students before registration. Prerequisite: FINA 4325 or permission of instructor.

5332. Practicum in Portfolio Management (Honors Section, Spring Only). Offers practical experience in investments by managing the Ann Rife Cox Investment Fund. Economic and industry analysis and the determination of their effect on investment decisions. Money and capital market forecasts; selection of individual securities; development of a portfolio strategy. Prerequisites: FINA 4326 and permission of instructor required, minimum 3.50 G.P.A. is typically necessary.