1997-98 Catalog of Studies

Departments, Majors, and Courses

FINANCE (FINN)

John A. Dominick, Department Chair, Chairholder of the Arkansas Bankers
Association Chair of Banking and the Bellamy Chair of Banking and Finance
302 B.A. Building, 575-4505

PROFESSOR DOMINICK; DILLARD CHAIR OF CORPORATE FINANCE PROFESSOR MILLAR; NORRIS LECTURER PROFESSOR LIU; PROFESSORS HARDIN, KENNEDY, LYNCH; ASSOCIATE PROFESSORS HEARTH, PERRY, RIMBEY; ASSISTANT PROFESSOR CARTER; INSTRUCTOR RISK

The curriculum in the Department of Finance is designed to give the student an understanding of (1) the economic process involved in capital formation and (2) the theory and practice of financial decision-making in order to manage new and existing capital to achieve real economic growth and development.

The student's studies provide: (1) a knowledge of the financial structure of the U.S. economy; (2) an understanding of the principles of monetary theory and practice; (3) an understanding of the investment management principles used in operating the major financial institutions and pension funds; and (4) an understanding of the principles underlying the finance function in industrial and commercial firms.

The knowledge acquired from the finance curriculum prepares the student for many career opportunities in financial management and investments, in manufacturing, wholesale and retail firms, commercial banking, real estate firms, insurance companies, and other enterprises. In addition, this knowledge will be of substantial assistance in the management of personal investments and other financial affairs.

The Department of Finance offers four options within the finance major: Banking (Option I), Financial/Management (Option II), Insurance (Option III), and Real Estate (Option IV). The following requirements must be satisfied for each option.

FINANCE MAJOR REQUIREMENTS WITH OPTIONS

Hours
University Core Requirements 35
Additional General Education Requirements 28
MATH 2043, Survey of Calculus 3
COMM 1313, Fundamentals of Comm 3
ECON 2013, Prin. of Macroeconomics32 3
ECON 2023, Prin. of Microeconomics32 3
ECON 3000/4000 (Jr./Sr. level requirements

3

 
General Education Electives 13
_______
Total General Education 63
32Students who elect ECON 2013 and/or ECON 2023 as a social science requirement may increase their general education electives by that number of hours.

 

Core Requirements of the College of Business Administration

 

33

 

Courses Required in all Options

 

18-21

FINN 3053, Fin Markets/Institutions 3
FINN 3063, Prin of Investments 3
FINN 4233, Fin Policy & Planning 3

 

OPTION I: BANKING

FINN 3133, Commercial Banking 3
FINN 4313, Adv Commer Banking Mgmt 3
ACCT 3721L, Fin. Acct. Computer Lab34 1
ACCT 3723, Fin. Reporting & Analysis 3
FINN 3703, International Finance 3

 

OPTION II: FINANCIAL MANAGEMENT

FINN 4133, Advanced Investment or
FINN 4143, Portfolio Mgmt I33 3
ACCT 3721L, Fin. Acctg. Computer Lab34

1

 
ACCT 3723, Fin. Reporting & Analysis 3
FINN 3703, International Finance 3

33By invitation only.

34ACCT 3721L may serve as a junior/senior BA elective.

 

OPTION III: INSURANCE

FINN 3623, Risk Management 3
FINN 4733, Life/Health Insurance I 3
FINN 4833, Property/Casualty Ins I 3

 

OPTION IV: REAL ESTATE

FINN 3933, Real Estate Principles 3
FINN 4413, Real Estate Invest/Appr 3
FINN 4433, Real Estate Finance 3

 

Junior/Senior electives within College of Business Administration35 (Only 6 hours are permitted within finance)

9-12
_______
Total College of Business Administration Requirements 63
Total Degree Requirements 126
35The hours required vary with that of the option selected.

 

 

Recommended Course Sequence for Banking Option

 

Junior Year

First Semester
3 CISQ 3333, Info Systems Mgmt
3 MKTT 3433, Principles of Marketing
3 ACCT 3723. Fin. Reporting & Analysis
1 ACCT 3721L, Fin. Acct. Computer Lab34
3 FINN 3043, Fin Mgmt Theory/Practice
3 Junior/senior economics elective
16 semester hours
34ACCT 3721L may serve as a junior/senior BA elective.

 

Second Semester

3 MGMT 3563, Mgmt Concepts/Orgn Behav
3 FINN 3063, Principles of Investments
3 FINN 3053, Financial Markets/Institutions
3 FINN 3133, Commercial Banking
3 FINN 3703, International Finance
2 General education elective
17 semester hours

 

Senior Year

First Semester    
3 CISQ 3603, Production & Ops Mgmt
3 FINN 4313, Adv Commercial Bank Mgmt
3 FINN 4233, Financial Policy and Planning
3 Junior/senior business elective
3 General education elective
15 semester hours

 

Second Semester

3 MGMT 4833, Strategic Management
6 Junior/senior business electives
8 General education electives
17 semester hours

 

 

Recommended Course Sequence for Financial Management Option

 

Junior Year

First Semester
3 CISQ 3333, Info Systems Mgmt
3 MKTT 3433, Principles of Marketing
1 ACCT 3721L Fin. Acct. Computer Lab36
3 ACCT 3723 Fin. Reporting & Analysis
3 FINN 3043, Fin Mgmt Theory/Practice
4-5 General education electives

17-18

semester hours
36ACCT 3721L may serve as a junior/senior BA elective.

 

Second Semester

3 FINN 3053, Financial Markets/Institutions
3 FINN 3063, Principles of Investments
3 MGMT 3563, Mgmt Concepts/Orgn Behav
3 FINN 3703, International Finance
3 Junior/senior economics elective
15 semester hours

 

Senior Year

First Semester
3 CISQ 3603, Production & Ops Mgmt
3 FINN 4133, Advanced Investments or
FINN 4143, Portfolio Management I37
3 FINN 4233, Financial Policy and Planning
6 Junior/senior business electives
15 semester hours
37By invitation only.

 

Second Semester

3 MGMT 4833, Strategic Management
6 Junior/senior business electives
8 General education electives
17 semester hours

 

 

Recommended Course Sequence for Insurance Option

 

Junior Year

First Semester
3 CISQ 3333, Info Systems Mgmt
3 FINN 3043, Fin Mgmt Theory/Practice
3 MKTT 3433, Principles of Marketing
3 MGMT 3563, Mgmt Concepts/Orgn Behav
5 General education electives
17 semester hours
Second Semester
3 CISQ 3603, Production & Ops Mgmt
3 FINN 3053, Financial Markets/Institutions
3 FINN 3063, Principles of Investments
3 FINN 3623, Risk Management
3 Junior/senior business elective
15 semester hours
Senior Year
First Semester
3 FINN 4733, Life and Health Insurance I
3 FINN 4233, Financial Policy and Planning
3 Junior/senior economics electives
6 General education electives
15 semester hours
Second Semester
3 FINN 4833, Property/Casualty Insurance I
3 MGMT 4833, Strategic Management
9 Junior/senior business electives
2 General education elective
17 semester hours
Recommended Course Sequence for
Real Estate Option
Junior Year
First Semester
3 CISQ 3333, Info Systems Mgmt
3 FINN 3043, Fin Mgmt Theory/Practice
3 MKTT 3433, Principles of Marketing
3 MGMT 3563, Mgmt Concepts/Orgn Behav
3 FINN 3933, Real Estate Principles
15 semester hours
Second Semester
3 CISQ 3603, Production & Ops Mgmt
3 FINN 3053, Financial Markets/Institutions
3 FINN 3063, Principles of Investments
3 FINN 4233, Financial Policy and Planning
5 General education electives
17 semester hours
Senior Year
First Semester
3 FINN 4413, Real Estate Invest/Appraisal
3 Junior/senior business elective
3 Junior/senior economics elective
6 General education electives
15 semester hours
Second Semester
3 MGMT 4833, Strategic Management
9 Junior/senior business electives
3 FINN 4433, Real Estate Finance
2 General education elective
17 semester hours    

Courses: Finance (FINN)

3003 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 junior standing and completion of all course prerequisites.

3033 Money and Banking (Fa, Sp, Su) Financial history; financial institutions; theory of prices and income; monetary policy in theory and practice. Prerequisite: ECON 2013, 2023; ACCT 2013.

3043 Financial Management Theory and Practice (Fa, Sp, Su) Introduction to management and formation of capital; the finance function and its environment; techniques of financial analysis, planning and control; management of working capital; capital budgeting; cost of capital; money and capital market analysis; management of capital structure. Prerequisite: ECON 2013, 2023; ACCT 2023; CISQ 2013.

3053 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: FINN 3043.

3063 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.

3133 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.

3623 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. Prerequisite: ECON 2013, 2023.

3703 International Finance Introduction to international financial markets, exchange rates and exchange rate determination, balance of trade measures, and vehicles for foreign trade financing. Prerequisite: junior standing.

3933 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. Prerequisite: ECON 2013, 2023.

399H Honors Course (1-6) (Irregular) 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. By arrangement, 1 to 6 hours of credit.

4133 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. Prerequisites: ECON 2023; ACCT 2023; CISQ 2013; FINN 3063; FINN 3043.

4143 Portfolio Management I (Fa) Theories of portfolio construction, rules, fundamental analysis, technical analysis, and random walk as applied to portfolio management; investment goals and strategies; decision-making on portfolio of Rebsamen Investment Trust. Prerequisite: FINN 3043, 3063, and permission of instructor.

4153 Portfolio Management II (Sp) Theories of portfolio construction, rules, fundamental analysis, technical analysis, and random walk as applied to portfolio management; investment goals and strategies; decision-making on portfolio of Rebsamen Investment Trust. Prerequisite: FINN 4143, and permission of instructor.

4233 Financial Policy and Planning (Fa, Sp, Su) Policy and problems in financial planning for working capital, capital budgets, and capital structure. Prerequisite: FINN 3043.

4313 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.

4413 Real Estate Investment and Appraisal (Fa) Investment analysis and valuation theory applied to real estate. Prerequisite: FINN 3933.

4433 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.

4733 Life and Health Insurance I (Fa) Basic principles, functions, uses of life and health insurance; types of policy contracts; calculation of premiums, reserves; organization, management, supervision of companies. Prerequisite: ECON 2013, 2023.

4833 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. Prerequisite: ECON 2013, 2023.

4843 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.

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

5203 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. Prerequisites: ACCT 5103, ECON 5103 and CISQ 5203.

5303 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.

5333 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.

5623 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.

5633 Financial Institutions (Sp) Savings intermediation and its effects on allocating investment 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.

5703 Multinational Business Finance (Fa) Problems pertinent to manager of firm in multinational business environment, including international institutions, risks, investments, capital budgeting. Prerequisite: FINN 5203.

6043 Finance Theory Provides a conceptual understanding of key theoretical developments in the field of financial economics, including firm decisions under risk within a world of uncertainty. Prerequisite: consent of instructor.

6133 Seminar in Investment Theory (Sp) Study advanced literature in field investments, with special reference to theory of random walks, stock valuation models, portfolio management. Prerequisite: instructor's consent.

6233 Seminar in Financial Management (Fa) Financial management of firm with emphasis on financial theory or firm, quantitative methods used in financial analysis, planning. Prerequisite: instructor's consent.

6333 Empirical Research in Finance and Accounting 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.)

636V Special Problems in Finance (1-6) (Irregular) Case studies in investments, corporation finance, money and banking, monetary theory, international finance, public finance. By arrangement. 1 to 6 hours of credit. Prerequisite: instructor's consent.

6733 Seminar in Financial Markets and Institu-tions 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.

700V Doctoral Dissertation (1-18) (Fa, Sp) Prerequisite: candidacy and consent.

 

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