FINANCE

Wayne Y. Lee, Department Chair and Alice L. Walton Chair in Finance, 302 B.A. Building, 575-4505

* Arkansas Bankers Association and Bellamy Chair of Banking and Professor Dominick, Alice L. Walton Chair in Finance and Professor Lee, Dillard Chair of Corporate Finance and Professor Millar, Harold A. Dulan Finance Chair in Capital Formation and Professor Liu * Associate Professors Hearth, Perry, Rimbey * Clinical Assistant Professor Carter * Instructors Driver, Risk

The academic mission of the faculty and staff of the department of finance is to impart an educational experience that provides the following:

• stimulates student learning through open dialogue and didactic discourse both inside and outside the classroom;
• actively engages students in their own learning through problem-based casework, participation in real-world business laboratories, and/or internships in the financial community; and
• prepares students to successfully meet the rigors of the challengingly diverse career opportunities in finance.

Finance Major

Students who elect to major in finance can choose from one of four concentrations: banking; financial management/investment; insurance; and real estate. This choice should reflect the student's primary career focus and electives listed in other finance concentrations should be used to complement the coursework in the chosen concentration. Careers in finance that are analytically oriented will generally require proficiency in accounting, economics, and quantitative methods. In contrast, careers in finance that are sales or management oriented will generally require marketing and management expertise. A detailed description of the educational background and work experience necessary for potential careers in finance published by Financial Management Association International can be viewed on the department's website. Finance majors are strongly encouraged to consult with departmental faculty advisers and/or the department chair in developing their curriculum.

Finance Major Requirements with Concentrations
Complete the requirements for a B.S.B.A. degree
	HOURS
Total General Education	63
Walton College Core Requirements	33
Courses Required in All Concentrations Choose any three (3) of the four (4) courses below.	18-22
FINN 3053, Financial Markets and Institutions
FINN 3063, Principles of Investments
FINN 3203,Intermediate Financial Management
FINN 3703, International Finance

(Note: FINN 3203 intermediate financial management and FINN 3102 financial modeling are pre-requisites for FINN 4233 financial policy and planning; FINN 3063 principles of investments and FINN 3102 financial modeling are pre-requisites for FINN 4133 advanced investment and FINN 4143 portfolio management I.)

Concentration I: Banking	HOURS
FINN 3133, Commercial Banking	3
FINN 4313, Advanced Commercial Bank Mgmt	3
FINN 3102, Financial Modeling	2
ACCT 3721L, Financial Accounting Computer Lab	1
ACCT 3723, Financial Reporting and Analysis	3

Concentration III: Insurance	HOURS
FINN 3623, Risk Management	3
FINN 4733, Life/health Insurance I	3
FINN 4833, Property/Casualty Ins I	3

 

Concentration IV: Real Estate
FINN 3933, Real Estate Principles	3
FINN 4413, Real Estate Investment and Appraisal	3
FINN 4433, Real Estate Finance	3
Junior- senior-level electives within Walton College	9-12
(Only six hours are permitted within finance)
Total Walton College Requirements	63
Total Degree Requirements	126

COURSES: FINANCE (FINN)

FINN3003 Personal Financial Management (FA, SP) Topics covered include budgeting, financial planning, managing credit, taxes, insurance, investments, and retirement planning.

Enrollment in junior/senior business courses is contingent upon completion of all course prerequisites.

The following courses are restricted to students with graduate standing and require the consent of the instructor.

FINN3033 Money and Banking (FA, SP, SU) Financial history; financial institutions; theory of practice and income; monetary policy in theory and practice. Prerequisite: ECON 2013 and ECON 2023 and ACCT 2013.

FINN3043 Principles of Finance (FA, SP, SU) Introduction to financial markets and institutions, investments, and financial management. Addresses the role and function of financial intermediaries and markets for fixed income and equity securities; understand how interest rates are determined and financial assets are priced; learn how firms create value through its investment and financing decisions. Prerequisite: ECON 2013 and ECON 2023 and ACCT 2023 and CISQ 2013.

FINN3053 Financial Markets and Institutions (FA, SP, SU) Role and operations of financial markets and institutions in the economy. Supply of, demand for, funds, interest rates and flow of funds analysis. Financial policies, practices of bank and nonbank financial institutions. Prerequisite: (ECON 2013 and ECON 2023) or ECON 2143.

FINN3063 Principles of Investments (FA, SP, SU) Introduction to basic investment principles including: risk return tradeoff, types of securities, market efficiency, interest rates, and speculative investments. Prerequisite: FINN 3043.

FINN3102 Financial Modeling (FA, SP, SU) Develop strong computer skills in financial analysis by integrating conceptual material with spreadsheet-based numerical solution and simulation techniques. Prerequisite: FINN 3043.

FINN3133 Commercial Banking (FA, SP, SU) Commercial bank administration, management; loans; bond portfolios; credit analysis; public relations; analysis and interpretations of Federal Reserve regulations and publications. Prerequisite: FINN 3043.

FINN3603 Intermediate Financial Management (FA, SP, SU) Develop analytical competencies in financial planning, cost of capital estimation, application of discounted cash flow approach to valuation and capital allocation, lease analysis, evaluation of merger and organizational restructuring strategies. Prerequisite: FINN 3043.

FINN3623 Risk Management (FA, SP) A survey of the extent and types of risk in business; ways of dealing with business risk; use of security and commodity exchanges; survey of insurance for risk bearing purposes.

FINN3703 International Finance (FA, SP, SU) Introduction to international financial markets, exchange rates and exchange rate determination, balance of trade measures, and vehicles for foreign trade financing.

FINN3933 Real Estate Principles (FA, SP, SU) Comprehensive, covering economics of real estate, real estate value, real estate finance, rights in real property and their transfer, public programs, policies relating to real property.

FINN399VH Honors Course (1-6) (IR) Open only to students in an honors program. Independent research and reading which lead to the development of a research paper under the supervision of senior staff.

FINN4003H Finance Honors Colloquium (IR) Explores important concepts, significant events and/or new developments in the field of Finance. Prerequisite: Senior standing.

FINN4133 Advanced Investments (FA, SP) Sound training in the principles of security analysis and portfolio management and certain advanced techniques of financial management. Modern portfolio theory and its application to portfolio management practices will be emphasized. Prerequisite: ECON 2023 and ACCT 2023 and CISQ 2013 and FINN 3063 and FINN 3043.

FINN4143 Portfolio Management I (FA) Theories of portfolio construction, rules, fundamental analysis, and random walk as applied to portfolio management; investment goals and strategies; decision making on portfolio of Rebsamen Investment Trust. Prerequisite: FINN 3043 and FINN 3063.

FINN4153 Portfolio Management II (SP) Theories of portfolio construction, rules, fundamental analysis, and random walk as applied to portfolio management; investment goals and strategies; decision making on portfolio of Rebsamen Investment Trust. Prerequisite: FINN 4143.

FINN4233 Financial Policy and Planning (FA, SP, SU) Policy and problems in financial planning for working capital, capital budgets, and capital structure. Prerequisite: FINN 3043.

FINN4313 Advanced Commercial Bank Management (FA, SP) Problems and cases emphasizing application of analytical tools, techniques in decision making process. Determination of operating policies regarding loans, investments, liquidity, capital; efficient performance of lending, investment function; profit planning, analysis; strategies of growth, competition; evaluation of bank performance. Prerequisite: FINN 3133.

FINN4413 Real Estate Investment and Appraisal (FA) Investment analysis and valuation theory applied to real estate. Prerequisite: FINN 3933.

FINN4433 Real Estate Finance (SP) Consideration of professional aspects of real estate, brokerage, property management, finance, appraisal, property development, current problems and developments relating to real property. Prerequisite: FINN 3933.

FINN450V Independent Study (1-3) (FA, SP, SU) (First Offered Fall 1999) Permits students on an individual basis to explore selected topics in finance, with the consent of instructor.

FINN4733 Life and Health Insurance I (FA) Basic principles, functions, uses of life and health insurance; types of policy contracts; calculation of premiums, reserves; organizations, management, supervision, of companies.

FINN4833 Property and Casualty Insurance I (SP) Forms and functions of fire, marine, inland marine, automobile title, miscellaneous types insurance and bonds for business, personal use.

FINN4843 Property and Casualty Insurance II (SP) Institutional and functional aspects of property and casualty insurance industry; analyzes types of carriers, marketing organizations, underwriting, rates and rate making, financial analysis, problems facing the industry in these areas. Prerequisite: FINN 3623.

FINN5203 Money and Capital Management (SP, SU) Role of finance in U.S. economy; the institutions, monetary theory, policies which comprise environment in which financial decisions are made. Finance function within firm; financial analysis, planning and control, financial decision making models, financial policies for management. Prerequisite: ACCT 5103 and ECON 5103 and CISQ 5203.

FINN5303 Advanced Financial Management (FA, SP, SU) Financial management of firm, with special emphasis on financial planning, capital budgeting, cost-of-capital concepts. Prerequisite: FINN 5203.

FINN5333 Investment Theory and Management (FA) Integration of theory, practice of investments with solution of individual and institutional portfolio management problems; Institute of Chartered Financial Analysts' Problems; variable annuity in estate planning. Prerequisite: FINN 5203.

FINN5623 Investment Banking and Securities Markets (FA) Topics include investment banking, securities markets, traditional and new financial products, money management, and financial innovation. Prerequisite: FINN 5203.

FINN5633 Financial Institutions (SP) Savings intermediation and its effects on allocating investments funds; characteristics of financial institutions including services, assets management, growth; relations between growth of institutions and interest rates, consumer behavior, investment demand, government policies, critical evaluation of performance by financial intermediaries. Prerequisite: FINN 5203.

FINN5703 Multinational Business Finance (FA) Problems pertinent to manager of firm in multinational business environment, including international institutions, risks, investments, capital budgeting. Prerequisite: FINN 5203.

FINN6043 Finance Theory (FA, SP, SU) Provides a conceptual understanding of key theoretical developments in the field of financial economics, including firm decisions under risk within a world of uncertainty.

FINN6133 Seminar in Investment Theory (SP) Study advanced literature in field investments, with special reference to theory of random walks, stock valuation models, portfolio management.

FINN6233 Seminar in Financial Management (FA) Financial management of firm with emphasis on financial theory or firm, quantitative methods used in financial analysis, planning.

FINN6333 Empirical Research in Finance and Accounting (FA, SP, SU) A study of recent empirically based research in finance and accounting literature with emphasis on the application of various research methods to finance and accounting data. (Same as ACCT 6333)

FINN636V Special Problems in Finance (1-6) (IR) Case studies in investments, corporation finance, money and banking, monetary theory, international finance, public finance. By arrangement.

FINN6733 Seminar in Financial Markets and Institutions (FA, SP, SU) Recent developments in the literature of financial markets and institutions. Participants will be involved in the extensive study of existing theories and empirical tests of the theories.

FINN700V Doctoral Dissertation (1-18) (FA, SP) Prerequisite: candidacy.

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