FINANCE AND BUSINESS ECONOMICS. Elective Course Guide For Marshall Undergraduates. March 2013

Transcription

1 FINANCE AND BUSINESS ECONOMICS Elective Course Guide For Marshall Undergraduates 2013 March 2013

2 FINANCE AND BUSINESS ECONOMICS DEPARTMENT UNDERGRADUATE ELECTIVES 2013 All Marshall undergraduate students graduate with a BS in Business Administration. However, students are given flexibility in their schedules to choose electives permitting them to focus on certain areas of study. Students focusing in Finance and Business Economics will develop the skills necessary to work at a high level of expertise in various areas of finance, including commercial and investment banking, corporate finance management, asset and wealth management, management consulting, mergers and acquisitions, venture capital and real estate. The field of finance is changing rapidly, and students taking courses in finance will develop the basic tools and skills to be able to learn and adapt to these changes. The emphasis will be on how to think of creative, practical and efficient solutions to the new financial challenges facing our society. The Marshall School's top-ranked Finance and Business Economics (FBE) Department consists of faculty members who are leading authorities in microeconomics, macroeconomics, corporate finance, investments, financial institutions, financial markets, and real estate finance. These academic disciplines are important for business planning and consulting, evaluation of capital investments and corporate strategies, and securities investment analysis, advising, and trading. Professors from FBE, and course instructors from the financial industry offer a range of upper-level elective courses preparing Marshall undergraduates for a variety of careers. Possible finance careers are: Corporate Finance Financial Consulting Investment Banking Commercial Banking Hedge Funds Investment Management Private Equity and Venture Capital Corporate Compliance and Risk Management Economic and Financial Analysis Support for Litigation and Regulatory Proceedings Real Estate A description of these careers and recommended FBE and other departmental electives to prepare for these careers are shown on pages 3 to 19. In addition, finance electives can be taken to equip students well for careers in law. See Pre- Professional Studies on page 20. 1

3 Finally, for students who have not made a specific career choice, there is an elective track called General Financial Management, which allows students to sample a wide range of financial courses to give them the opportunity to develop their finance skills widely. See page 21. Marshall s electives are described on pages Page 31 provides a description of courses offered through the Leventhal School of Accounting. A table showing when the elective courses are taught, i.e., Spring, Summer or Fall, is on page A table showing the instructors for the elective courses is on pages USC Department of Finance and Business Economics Bridge Hall, Room Trousdale Parkway, Ste. 308 Los Angeles, CA Main Office Telephone: (213) Department Fax: (213)

4 ESSENTIAL COURSES OTHER COURSES OF INTEREST Corporate Finance Financial Consulting Investment Banking FBE ELECTIVES Commercial Banking Hedge Funds Investment Management Private Equity and Venture Capital Corporate Compliance and Risk Management Economic and Financial Analysis Support for Litigation and Regulatory Proceedings FBE 421 (4) FBE 421 (4) FBE 421 (4) FBE 421 (4) FBE 421 (4) FBE 421 (4) FBE 437 (4) FBE 403 (4) FBE 421 (4) FBE 431 (4) FBE 436 (4) FBE 458 (4) FBE 458 (4) FBE 441 (4) FBE 441 (4) FBE 421 (4) FBE 428 (4) FBE 432 (4) FBE 441 (4) ACCT 415 (4) ACCT 415 (4) ACCT 415 (4) FBE 459 (4) ACCT 459 (4) FBE 441 (4) FBE 458 (4) FBE 441 (4) FBE 458 (4) ACCT 416 (2) ACCT 416 (2) ACCT 416 (2) FBE 460 (4) FBE 460 (4) FBE 458 (4) FBE 460 (4) FBE 460 (4) FBE 460 (4) ACCT 417 (2) FBE 324 FBE 460 (4) FBE 324 FBE 324 FBE 324 FBE 324 (4) FBE 429 (4) FBE 431 (4) FBE 431 (4) FBE 416 (4) FBE 435 (4) FBE 459 (4) FBE 429 (4) ECON 350 (4) FBE 403 (4) FBE 431 (4) FBE 432 (4) FBE 432 (4) FBE 440 (4) FBE 440 (4) FBE 431 (4) MOR 421 (4) ECON 351 (4) FBE 416 (4) FBE 432 (4) FBE 440 (4) FBE 436 (4) FBE 435 (4) FBE 489 (4) FBE 432 (4) MOR 469 (4) FBE 402 (4) ACCT 371 (4) FBE 437 (4) FBE 459 (4) FBE 437 (4) FBE 458 (4) FBE 391 (4) ACCT 416 (2) MOR 471 (4) FBE 403 (4) ACCT 410 (4) FBE 458 (4) ACCT 417 (2) FBE 440 (4) FBE 425 (4) FBE 431 (4) ACCT 462 (2) MOR 472 (4) ECON 317 (4) ACCT 415 (4) FBE 459 (4) FBE 431 (4) ACCT 416 (2) ACCT 473(2) MOR 473 (4) ECON 357 (4) FBE 460 (4) FBE 432 (4) ACCT 473 (2) BAEP 423 (4) ECON 401 (4) FBE 403 (4) FBE 425 (4) BAEP 451 (4) ECON 414 (4) Math 458 (4) FBE 416 (4) Math 503 (4) Other classes in computer programming or Computer Science See page 5 See page 6 See page 7 See page 8 See pages 9-10 See page 11 See pages See page 14 See page 15 3

5 ESSENTIAL COURSES OTHER COURSES OF INTEREST Real Estate FBE ELECTIVES Real Estate Development Real Estate Finance Construction and Construction Management Pre Professional Studies General Financial Management FBE 391 (4) FBE 391 (4) FBE 391 (4) FBE 402 (4) FBE 432 (4) FBE 466 (4) FBE 470 (4) FBE 466 (4) FBE 403 (4) FBE 441 (4) FBE 427 (4) FBE 489 (4) FBE 470 (4) FBE 423 (4) FBE 437 (4) FBE 427 (4) FBE 427 (2) FBE 428 (4) FBE 440 (4) CE 460 FBE 458 (4) FBE 489 (4) FBE 470 (4) FBE 466 (4) CE 412 FBE 429 (4) FBE 421 (4) FBE 489 (4) FBE 324 (4) CE 461 MOR 421 FBE 431 (4) Arch 106x FBE 421 (4) CE 462 BUCO 425 FBE 433 (4) Arch 304x FBE 425 (4) CE 472 BUCO 445 FBE 436 (4) Geog 281L FBE 441 (4) COMM 302 FBE 458 (4) Geog 105L FBE 459 (4) COMM 375 FBE 464 (4) PPD 417 PPD 435 MOR 421 PPD 435 PPD 470 MOR 469 PPD 470 CE 460 See page-17 See page 18 See page 19 See page 20 See page 21 4

6 CORPORATE FINANCE Description: This track permits students to prepare for careers in not-for-profit, government and corporate entities. As an integral part of a company s management team, a qualified individual will help the firm to secure funding sources to operate and grow a business, make acquisitions, prepare financial planning and manage risk. The courses are designed to help managers make better investment and financing decisions. Many corporations have leadership development programs in finance as a path to chief financial and executive officer positions. Positions are available to graduates in a wide array of industries and professions. Students who are interested in learning about careers in corporate finance should see our career video on this career path. The video can be found at Frequently sought positions: financial analyst, business analyst, corporate strategist, and turn-around specialists. Essential Courses: Units FBE 421 Financial Analysis and Valuation 4 FBE 431 Financial Policies and Corporate Control 4 FBE 441 Investments 4 FBE 458 Law and Finance 4 FBE 460 Mergers, Acquisitions and Restructuring 4 Other Courses of Interest: FBE 324 The Financial System 4 FBE 416 Managerial Economics 4 FBE 403 Introduction to the Legal Environment of Business 4 ACCT 371 Introduction to Accounting Systems 4 ACCT 410 Foundations of Accounting 4 ACCT 415 Intermediate Accounting for Non-Accounting Majors 4 5

7 FINANCIAL CONSULTING Description: Financial consultants provide financial advice to corporations and money managers. This advice may involve the strategies for creating shareholder value, business valuation, M&A advisory, and cost of capital determination. Firms involved in this growing area include Boston Consulting Group, Houlihan Lokey Howard & Zukin, Ibbotson Associates, LEK Consulting, Marakon, McKinsey & Co., and Stern Stewart & Co. Essential Courses Units FBE 421 Financial Analysis and Valuation 4 FBE 436 Financial Management of Multinational Corporations 4 Acct. 415 Intermediate Financial Accounting For Non-Accounting Majors 4 Acct. 416 Financial Reporting and Analysis 2 FBE 460 Mergers, Acquisitions and Restructuring 4 FBE 324 The Financial System 4 Other Courses of Interest FBE 429 International Business Law 4 FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 437 Entrepreneurial Finance: Financial Management for Developing Firms 4 FBE 458 Law and Finance 4 FBE 324 The Financial System 4 6

8 INVESTMENT BANKING Investment Banks help companies and governments issue and purchase securities, manage financial assets, trade securities and provide financial advice to corporations and individuals. In addition, the banks design and market new financial products. The top investment banks include Goldman Sachs, JP Morgan and Morgan Stanley. Other investment banks are regionally oriented or situated in the middle market (e.g. Piper Jaffray). Others are small, specialized firms called boutiques. Students who are interested in learning about careers in investment banking should see our career video on this career path. The video can be found at Many college graduates start in investment banking in an analyst position. To succeed in these positions you need to be extremely dedicated, have good spreadsheet skills and be analytically fluent. Your next step will be to become an associate. Investment banking is a high work, high risk, high reward profession. The investment banking career requires a thorough comprehension of valuation techniques and an understanding of how financial markets both nationally and internationally function. Investment bankers must be comfortable analyzing financial statements, thus the importance of the three accounting courses in the selection of courses below. In addition, investment bankers must have an understanding of strategy and competitive markets. Finally, as with most financial careers, quantitative skills are crucial Essential Courses Units FBE 421 Financial Analysis and Valuation 4 FBE 458 Law and Finance 4 ACCT 415 Intermediate Financial Accounting For Non-Accounting Majors 4 ACCT 416 Financial Reporting and Analysis 2 FBE 460 Mergers, Acquisitions and Restructuring 4 FBE 324 The Financial System 4 Other Courses of Interest FBE 459 Financial Derivatives 4 FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 440 Trading and Exchanges 4 FBE 324 The Financial System 4 ACCT 417 Advanced Financial Accounting For Non-Accounting Majors 2 7

9 COMMERCIAL BANKING Description: Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. Today's commercial banks are more diverse than ever. A large bank will serve middle market and large US corporate and institutional clients with debt and equity underwriting, mergers and acquisitions, loan syndications, debt and equity sales, trading, tax-exempt products, and hedging products related to equity, commodities, and interest rate risk. In addition, a large bank may be a registered investment advisor that focuses on managing equity, fixed income and blended portfolios for a variety of institutional clients and provides comprehensive planning and advice, investment management, brokerage, private banking, estate planning strategies, trust, insurance and retirement to high net worth individuals. Students who are interested in learning about careers in commercial banking should see our career video on this career path. The video can be found at Frequently Sought Positions: Credit analyst, Loan Officer, Branch Manager, Trust Officer, Mortgage Banker, Private Client Services, Wealth Manager, Business Planning. Essential Courses Units FBE 421 Financial Analysis and Valuation 4 FBE 458 Law and Finance 4 ACCT 415 Intermediate Financial Accounting For Non-Accounting Majors 4 ACCT 416 Financial Reporting and Analysis 2 ACCT 417 Advanced Financial Accounting For Non-Accounting Majors 2 FBE 324 The Financial System 4 Other Courses of Interest FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 440 FBE 460 Trading and Exchanges Mergers, Acquisitions and Restructuring 4 4 FBE 459 Financial Derivatives 4 FBE 436 Financial Management of Multinational Corporations 4 FBE 437 Entrepreneurial Finance: Financial Management for Developing Firms 4 8

10 HEDGE FUNDS Description: This career can be very diverse in terms of skills needed. The emphasis on logic and economic principles is common. The attention to detail and emphasis on differences across assets is crucial for many funds. Many hedge funds are relatively small and follow unique investing strategies including publicly and privately traded securities. Some funds require a great deal of quantitative skills and others require few quantitative skills. The exact nature of skills needed depends on the type of hedge fund and the market opportunities; however, a brief description is included. Students who are interested in learning about careers in hedge funds should see our career video on this career path. The video can be found at Types of Positions Available and Related Skill Set Required: Analysts Economic principles, valuation, investments, accounting skills, portfolio management, derivatives topics and financial institutions knowledge is helpful. Analysts Quantitative hedge funds If analysts are working for a quantitative hedge fund (quant fund or high frequency trading firm), then the analyst would usually need statistics, Econometrics, math finance and/or financial engineering skills). Derivatives, Knowledge, Investments and portfolio management skills are very useful. In addition, computer programming skills such as C++ are needed. Portfolio Manager Investments, Portfolio Management skills, trading and sales skills useful. Risk Manager Derivatives, portfolio management skills, statistics, math finance skills Needed. C++ programming skills needed. Sales and Trading (Capital Raising, brokerage, trading, sales) General finance, derivatives, investments, portfolio management, Marketing, market microstructure, sales, presentation skills. Due Diligence Attention to detail, accounting, general finance skills, business law, Financial institutions Compliance Business law, law degree helpful, market microstructure, financial institutions. Essential Courses: Units FBE 421 Financial Analysis and Valuation 4 FBE 441 Investments 4 FBE 459 Financial Derivatives 4 FBE 460 Mergers, Acquisitions and Restructuring 4 9

11 Additional Courses of Interest: Units FBE 416 Managerial Economics 4 FBE 440 Trading and Exchanges 4 FBE 435 Fixed Income Securities 4 FBE 458 Law and Finance 4 FBE 425 Management of Financial Institutions 4 FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 403 Introduction to the Legal Environment and Business 4 Math 458 Numerical Methods (quantitative hedge funds) 4 Math 503 Stochastic Calculus for Finance 4 For Quantitative Hedge Funds - Other classes involving computer programming or Computer Science: C++ programming, matlab, SAS, SPSS 10

12 INVESTMENT MANAGEMENT Description. This category typically includes publicly traded stocks and bonds. This category is classified as the buy side of investments. Many professionals are involved in the investment process. These are a few of the opportunities available. Types of Positions Available and Related Skill Set Required: Analyst Valuation skills, investments, portfolio management, derivatives, economic principles, accounting skills. Portfolio Manager Portfolio management, investments, statistics, economic principles, valuation, derivatives, financial institutions, accounting skills Sales and Trading (brokerage, sales, trading, financial planning) General finance, investments, accounting, investments, valuation, marketing, sales, financial institutions Due Diligence Accounting, investments, portfolio management, valuation, business law, financial institutions Compliance Business law, market microstructure, law degree helpful depending on position, investments, derivatives, valuation, accounting Essential Courses: Units FBE 421 Financial Analysis and Valuation 4 FBE 441 Investments 4 FBE 459 Financial Derivatives 4 Additional Courses of Interest: FBE 435 Fixed Income Securities 4 FBE 440 Trading and Exchanges 4 FBE 489 Real Estate Capital Markets 4 FBE 391 Real Estate Finance and Investments 4 FBE 431 Financial Policies and Corporate Control 4 ACCT 416 Financial Reporting and Analysis 2 ACCT 473 Financial Statement Auditing 4 FBE 425 Management of Financial Institutions 4 FBE 416 Managerial Economics 4 FBE 324 The Financial System 4 11

13 PRIVATE EQUITY AND VENTURE CAPITAL Description. This category researches and invests in private companies and some public companies depending on the circumstances. The investment process may involve companies that are relatively young or new for Venture Capital and more seasoned firms for Private Equity investors. The skills and investment process typically differ substantially from Investment Management. Students who are interested in learning about careers in the private equity and venture capital industries should see our career video on this career path. The video can be found at Types of Positions Available and Related skill Set Required: Venture Capital Analyst Entrepreneurship courses, Entrepreneurial finance, Accounting, investments, valuation, economic principles Portfolio Manager Portfolio management, valuation, entrepreneurial finance, economic principles, accounting, investments, risk management Private Equity Analyst Intermediate Corporate Finance, Advanced corporate finance, valuation, accounting skills, entrepreneurial finance Portfolio Manager Investments, portfolio management, risk management, Advanced and Intermediate corporate finance Due Diligence Business law, possibly law degree, accounting skills, valuation skills, attention to detail Sales (Capital Raising) Sales, marketing, entrepreneurial finance, investments, valuation Essential Courses: Units FBE 437 Entrepreneurial Finance 4 FBE 421 Financial Analysis and Valuation 4 FBE 441 Investments 4 FBE 460 Mergers, Acquisitions and Restructuring 4 FBE 324 The Financial System 4 12

14 Additional Courses of Interest: Units FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 459 Financial Derivatives 4 ACCT 416 Financial Reporting and Analysis 2 ACCT 462 Detecting Fraudulent Financial Reporting 4 ACCT 473 Financial Statement Auditing 4 BAEP 423 Management of a Small Business 4 BAEP 451 Management of a New Enterprise 4 BAEP The New Venture Business Plan 4 13

15 CORPORATE COMPLIANCE AND RISK MANAGEMENT Description: This track is designed for students who wish to pursue careers involving a broad set of responsibilities. This officer level position functions as an independent and objective body within the management team. The position requires collaboration with other departments including internal audit, legal, risk management, human resources, operations and marketing. The position ensures the board of directors, management and employees are in compliance with the legal and regulatory environments in which the business operates domestically and internationally. The organization ensures that the company s standards of conduct are maintained. It acts as a quality control function on the systems and processes that prompt ethical conduct by the organization. Monitors, and as necessary, coordinates compliance activities of other departments. The employee ensures reporting of violations or potential violations to enforcement agencies. Frequently sought positions: corporate compliance officer, risk manager, environmental compliance officer, human resources, and corporate legal counsel positions. Essential Courses: Units FBE 403 Introduction to the Legal Environment of Business 4 FBE 428 Principles of Employment Law 4 FBE 458 Law and Finance 4 Other Courses of Interest: FBE 429 International business law 4 MOR 421 Social and Ethical Issues in Business 4 MOR 469 Negotiation and Persuasion 4 MOR 471 Managing and Developing People 4 MOR 472 Power, Politics and Influence 4 MOR 473 Designing and Leading Teams 4 14

16 ECONOMIC AND FINANCIAL ANALYSIS SUPPORT FOR LITIGATION AND REGULATORY PROCEEDINGS Description: This track prepares students to work within business consulting firms who provide support for law firms, lobbyists, governmental relations consultancies, and businesses. These professionals conduct economic, financial, accounting and marketing research to support the positions taken by clientele before governmental bodies, courts, and administrative panels. These research firms also assist in corporate strategic planning. These professionals are engaged in research and writing of position papers, as well as identifying and supporting experts employed in legal and regulatory proceedings. This position allows a graduate to acquire domestic and international expertise in diverse number of industries. These positions offer invaluable work experience opportunities in preparation for further graduate study in business, law and public policy. Frequently sought positions: financial analyst, business analyst, economic and competition analyst. Essential Courses: Units FBE 421 Financial Analysis and Valuation 4 FBE 432 Corporate Financial Strategy 4 FBE 441 Investments 4 FBE 458 Law and Finance 4 FBE 460 Mergers, Acquisitions and Restructuring 4 Other Courses of Interest: ECON 350 Macroeconomic Analysis for Business Decisions 4 ECON 351 Economic Analysis for Business Decisions 4 FBE 402 Government and Business 4 FBE 403 Introduction to the Legal Environment of Business 4 ECON 317 Introduction to Statistics for Economists 4 ECON 357 Money, Credit, and Banking 4 ECON 401 Mathematical Methods in Economics 4 ECON 414 Introduction to Econometrics 4 FBE 436 Financial Management of Multinational Corporations 4 15

17 REAL ESTATE The objective of electives in Real Estate is to provide in-depth exposure to theoretical and practical issues in real estate markets for students already exposed to the core business discipline. The program provides students with a broad framework of business theory and practice necessary to develop good management skills along with the knowledge of real estate institutions, relevant urban economics theory and theories of real estate market behavior. Courses emphasize applying business decision-making skills to real estate problems. Application areas emphasized in the two real estate options include real estate financing, marketing, investment management and public policy or real estate development. Students who are interested in learning about careers in real estate should see our career video on this career path. The video can be found at The Lusk Center for Real Estate, a campus-wide real estate research unit, is a co-venture of the Marshall School of Business and the School of Policy, Planning, and Development. The center facilitates real estate research and coordinates conferences and programs involving industry outreach and student-industry interaction. Specifically, the Lusk Center plays a significant role in placement and mentoring of both graduate and undergraduate students with interests in real estate careers. The Marshall School Program in Real Estate works hand in hand with the Lusk Center and the School of Policy, Planning, and Development to offer real estate students an integrated and current real estate education. Real Estate Careers are Available in the Following Areas: Real Estate Development Real Estate Finance Construction and Construction Management A description of each area, a list of players, and some of the careers in each area, are shown below together with essential courses and other courses of interest. 16

18 REAL ESTATE DEVELOPMENT Description: This group of careers focuses on topics relevant to the actual acquisition, construction and development of real estate projects, such as zoning, finance, deal structure, banking, leasing marketing and brokerage. Players: Development Firms include the Hines Corp., Bovis Lend-Lease, Majestic Realty, Howard Hughes Corp., Pardee Homes, and many others Some of the Careers and Job Descriptions within this Category: Real Estate Development Real Estate Investment Construction and Design Pre-Law with a Real Estate Emphasis Family Business Real Estate Construction and Acquisitions Property and Asset Management Real Estate Consulting and Advisory Services Real Estate Accounting Homebuilding Essential Courses: Units FBE 391 Real Estate Finance and Investments 4 FBE 466 Real Estate Feasibility Studies 4 FBE 427 Real Estate Law 4 Other Courses of Interest: FBE 470 Advanced Real Estate Analysis 4 FBE 489 Real Estate Capital Markets 4 Arch 106x Workshop in Architecture Arch 304x Intensive Survey: Prehistory to the Present Geog 281L Environmental Geographic Information Systems Geog 105L Introduction to Geology PPD 417 History of Planning and Development PPD 435 Analyzing Real Estate Markets for Planning and Development PPD 470 History and Development of Cities CE 460 Construction Engineering 17

19 REAL ESTATE FINANCE Description. This category includes careers in the financing of real estate assets involving the interplay between, and origins of, debt and equity in the capital markets, as well as the importance of market dynamics and urban economics. Players. Firms specializing in real estate finance include the banks; such as Wells Fargo, Washington Mutual, Bank of America, Consulting and Advisory firms; including KPMG, Ernst and Young, Deloitte, Investment Advisory and Fund Investors; such as Kennedy Wilson, Colony Capital, Morgan Stanley, Real Estate Brokerage; inclusive of CB Richard Ellis, Grubb and Ellis, Eastdil Secured, as well as a multitude of other firms and entities involved generally in real estate finance, marketing and investing both domestically and internationally. Some of the Careers and Job Descriptions within this Category: Real Estate Consulting and Advisory Family Business and Entrepreneurial Real Estate Operations and Management Property and Asset Management Real Estate Consulting and Advisory Real Estate Banking Mortgage Banking and Mortgage Brokerage Private Equity and Venture Capital Hotels, Restaurants and Entertainment (Hospitality) Real Estate Accounting Pre-Law with a Real Estate Emphasis Real Estate Sales and Marketing (Brokerage) International Real Estate Investing Essential Courses: Units FBE 391 Real Estate Finance and Investment 4 FBE 470 Real Estate Feasibility Studies 4 FBE 489 Real Estate Capital Markets 4 FBE 427 Real Estate Law 4 Courses of Interest FBE 466 Real Estate Feasibility Studies 4 FBE 324 The Financial System 4 FBE 421 Financial Analysis and Valuation 4 FBE 425 Management of Financial Institutions 4 FBE 441 Investments 4 FBE 459 Financial Derivatives 4 PPD 435 Analyzing Real Estate Markets for Planning and Development 4 PPD 470 History and Development of Cities 4 18

20 CONSTRUCTION AND CONSTRUCTION MANAGEMENT Description. This category includes employment and careers in the field of domestic and international construction and construction management, and is interdisciplinary between the Marshall School and the Civil Engineering Program in the Viterbi School of Engineering. Players. Firms involved in construction are the large local and National Homebuilders; including Lennar Homes, Lyon Homes, Pardee Homes, Construction Firms; such as Parsons Corp., Bechtel, Turner Construction, Energy Companies; including Chevron, Conoco Philips, Occidental Petroleum, Source of the Careers and Job Descriptions within This Category: Construction and Design Construction Management Civil Engineering and Engineering Economics Architecture Pre-Law with a Construction and Real Estate Emphasis Property and Asset Management Family Business Real Estate Operations and Management Family Business Real Estate Construction and Acquisitions Real Estate Cost Estimation Green and Sustainable Energy Development Energy Facilities Construction Construction Consulting Essential Courses: Units FBE 391 Real Estate Finance and Investments 4 FBE 466 Real Estate Feasibility Studies 4 FBE 470 Advanced Real Estate Analysis 4 FBE 427 Real Estate Law 4 CE 460 Construction Engineering 4 Other Courses of Interest: CE 412 CE 461 CE 462 CE 472 Construction Law and the Property Development Process General Construction Estimating Construction Methods and Equipment Construction Labor Movement 19

21 PRE-PROFESSIONAL STUDIES Description: This track accommodates the interests of those students who will pursue law school study following their undergraduate degree. Their ultimate objective is to provide analysis and counsel on legal, policy and environmental issues. In house legal counsel anticipate and guard against legal risks facing the company. They develop and recommend company policy and position on legal issues. They work with other departments with respect to proposed new products, protecting intellectual property, mergers and acquisitions, employment issues, financial offerings, financial structuring, securities offerings, tax compliance and business strategic planning. Such counsel can represent the company in legal and administrative proceedings and monitor the activities of outside legal counsel to the business. This officer level position functions as an independent and objective body within the management team. Strong communication skills are required for professional success. Frequently sought positions: In house and outside corporate legal counsel Essential Courses: Units FBE 402 Government and Business 4 FBE 403 Introduction to the Legal Environment of Business 4 FBE 423 Introduction to Venture Capital 4 FBE 428 Principles of Employment Law 4 FBE 458 Law and Finance Other Courses of Interest: FBE 429 International business law 4 MOR 421 Social and Ethical Issues in Business 4 BUCO 425 Ethics and Professional Communication 4 BUCO 445 Oral Communication in Business 4 COMM 302 Persuasion 4 COMM 375 Business and Professional Communication 4 MOR 421 Social and Ethical Issues in Business 4 MOR 469 Negotiation and Persuasion 4 20

22 GENERAL FINANCIAL MANAGEMENT How do you choose finance electives if you know you are interested in finance but you do not know what career path you want to follow? The following finance electives can help you find out what you are passionate about. In any event, the field of finance changes rapidly and it may be advisable for the student to gain a broad understanding of finance. The general financial management electives are designed for students who want to gain an exposure to a wide range of financial problems and applications. Essential Courses: Units FBE 432 Corporate Financial Strategy 4 FBE 441 Investments 4 FBE 437 Entrepreneurial Finance: Financial Management of Developing 4 Firms FBE 440 Trading and Exchanges 4 FBE 489 Real Estate Capital Markets 4 Other Courses of Interest FBE 421 Financial Analysis and Valuation 4 FBE 431 Financial Policies and Corporate Control 4 FBE 433 Compensation, Incentives, and Governance 4 FBE 436 Financial Management of Multinational Corporations 4 FBE 458 Law and Finance 4 FBE 464 International Finance 4 FBE 324 The Financial System 4 21

23 UNDERGRADUATE FBE ELECTIVE COURSE DESCRIPTIONS FBE 324: The Financial System This course examines the market for money, from its origins in gold mines to the inner workings of global financial institutions. The role and development of money and capital markets will be analyzed both from a U.S. and international perspective. Financial markets are composed of institutions and instruments shaped by economics and political factors. The economic and regulatory origins will be traced. Differences in cultural or legal emphasis among countries, leading to different financial system design will be highlighted. The underlying forces of change in the financial system will be identified, allowing financial institution managers to better understand and manage the risks. Prerequisites: BUAD 350 or BUAD 351; or ECON 203 and ECON 205; or ECON 351x and ECON 352x. FBE 391: Real Estate Finance and Investment Urban real estate resources, definitions and background; financial aspects of real estate markets and investments; urban and regional real estate markets and the development process. How do you classify various property rights? What is an escrow? How do you begin analyzing a real estate project? Other topics covered include deeds and conveyances, sources of mortgage financing, principles of valuation and urban real estate structure and problems. This is an ideal introductory course providing students with an overview of real estate principles and practices. This is a prerequisite course for other real estate electives. (This course satisfies the "Principles" requirement for students interested in obtaining a California Salesperson's License.) Prerequisites: BUAD 215x or BUAD 306. Note: Duplicates credit in former FBE 365. FBE 400x: Introduction to Real Estate Finance and Development Case analysis examining economic and financial aspects of real estate decisions for non-business majors. Focuses on dynamics of financing, markers and the development process. Open to all major. Not available for credit as a senior options course for business majors or for students in the real estate option. (Duplicates credit in former FBE 200x) Prerequisites: None FBE 402: Government and Business American mixed capitalism, welfare, market failure, and the role of government in business; regulation and the public utilities, antitrust policy, and current topics in regulation-deregulation. Prerequisites: None 22

24 FBE 403: Introduction to the Legal Environment of Business This course provides practical legal knowledge of substantive business law topics and current legal trends and issues. In an overview, the course: begins with an analysis of the nature and function of the law in the United States; proceeds with discussion of substantive legal principles to permit the student to acquire a sound grasp of the concepts, legal vocabulary, and rules of law which apply to the material covered (which includes such topics as ethics, constitutional law, torts, negligence, products and strict liability, intellectual property, and contracts); and, provides the long term benefit of spotting potential legal problems and issues. Through your study, class discussions, assessments and exercises, students will become better critical thinkers and able to make informed and effective business decisions. Prerequisites: None FBE 416: Managerial Economics This course focuses on the application of microeconomic theory to the problems of the firm. The course will cover: Estimation and quantification of the demand for a product; the estimation and quantification of production costs (both accounting and economic); how firms decide to expand, vertically and horizonatally; when to contract for a service or produce the service. A major focus of the course will be on the alternative pricing policies adopted by firms including single price, price-discrimination, and multi-part pricing schemes. Prerequisites: BUAD 311; and BUAD 351 or ECON 203 or ECON 351x. FBE 421: Financial Analysis and Valuation This course develops and utilizes tools of financial analysis to evaluate the performance and assess the value of individual companies in an industry and strategic context. The course will cover various approaches or models for financial analysis and valuation. It will stress applied issues such as the choice among various terminal value assumptions in valuation analysis, the relation between growth and valuation, and assessments of leverage that incorporate off-balance sheet financing. Students will learn to apply tools of financial analysis and several valuation methodologies to evaluate a company s strategic and competitive positioning, financial performance, and strategic alternatives. The major emphasis will be on utilizing and interpreting financial data to improve financial decision making. The applications we will cover in the course include enterprise and equity valuation in mergers and acquisitions, corporate restructurings, divestitures, management and leveraged buyouts, liquidations, and initial public offerings of common stock, and the use of financial analysis to predict financial distress, dividend policy changes, and future financing requirements. Prerequisites: BUAD 215x or BUAD

25 FBE 423: Introduction to Venture Capital FBE 423 uses a combination of lectures and case method to introduce you to venture capital, initial public offerings, and private equity. You will learn details on how financiers view investment opportunities including doing the financing part of a business plan. We will explore venture capital and also more generally private equity from a number of perspectives, beginning with the entrepreneur/issuer, moving to investors in private equity partnerships, how private equity cashes out with IPOs and finishing with small company midmarket leveraged buyouts. Topics include fundraising, investing (emphasizing valuation techniques for venture capital securities) and exiting investments. Prerequisites: BUAD 215x or BUAD 306 FBE 425: Management of Financial Institutions The objective of this course is to study the financial industry which affects most people on a daily basis, is one of the most rapidly changing industries domestically and in the world today offering challenging and interesting careers. Prerequisites: None FBE 427: Real Estate Law By taking this course students learn the theory and practical applications of substantive real estate law. All major topics of real property law as well as current trends and issues will be addressed. Sufficient material is covered for preparation for real estate license examinations. By the end of the course you will be familiar with the following: Sources and extent of real property interests Ownership and leasing of residential and commercial real property Agency law and regulation of real estate licenses Acquisition and conveyancing real property Commercial and residential financing Construction law and remedies Escrows and closing, including title insurance Tax aspects of real estate ownership and transfers Transferring property by wills, trusts, intestate succession and probate Public policy law and issues, including zoning and eminent domain Prerequisites: None FBE 428: Principles of Employment Law This course presents a comprehensive treatment of employment and labor law topics. The course commences with a review of the common law governing the employment relationship and proceeds to address the significant federal and state laws and regulations affecting that relationship. The course coverage includes the rights and responsibilities of private, unionized and public sector employers. These include current laws on employment discrimination, covenants not to compete, wage and hour, and privacy rights in the workplace. Special emphasis is placed upon emerging and growing enterprises wherein legal liability, retention, and human resources issues have become increasingly complex. Issues relevant to international employers are also presented. Prerequisites: None 24

26 FBE 429: International Business Law This course will require students to consider how the markets, people, and placed involved in trade, commerce, and exchanges throughout the world influences international business. Students will become aware of the effect that different cultural, political, and economic aspects of business have on each other. The course will require students to think how different international laws affect the way our own country and countries throughout the world do business. Specifically, students will examine such topics as the ethics of international law, international commercial dispute resolution national import and export regulations, international contract low, financial transactions, transport of goods, law of intellectual rights, and antitrust. Prerequisites: None FBE 431: Financial Policies and Corporate Control This course focuses on the development of a framework that is useful for understanding a broad range of major corporate financial decisions. Substantial emphasis will be placed on discussion of (i) the determinants of corporate debt and dividend policies, (ii) the allocation and value of corporate voting rights, and (iii) alternative methods of security issuance and retirement. The discussion will include application of the theory to issues such as common stock repurchases, initial public offerings, public offerings and private placements of seasoned stock, equity carve-out financing, junk bond financing, exchange offers and recapitalizations, management buyouts, high leverage restructuring, financial policy under conditions of distress, and the general relation between financial leverage and corporate investment policy. Prerequisites: BUAD 215x or BUAD 306 FBE 432: Corporate Financial Strategy The purpose of this course is to understand the practical aspects of the major types of investment and financial decisions of corporations using a mixture of cases and discussions, supplemented by lectures. We will apply the concepts and techniques you studied in BUAD 306 to real world situations. While our focus is primarily on corporate finance, we will also examine the links between finance and the main strategic objectives of the firm. The identification of these linkages and the constraints they impose on financial decisions makers is an important part of the course. Prerequisites: BUAD 215x or BUAD 306 FBE 435: Applied Finance in Fixed Income Securities The objectives of this course are to: Describe important fixed income securities and markets, and Develop tools for valuing fixed income securities and managing interest rate risk. The course covers traditional bonds and term structure concepts as well as fixed income derivatives and interest rate modeling. The study of fixed income securities is quantitative by nature and the material in this course is very analytical. Please keep this in mind in deciding whether to take the course. Prerequisites: BUAD 215x or BUAD

27 FBE 436: Financial Management of Multinational Corporations The course will help you develop critical skills in key areas of corporate international financial management through lectures, case analyses, and homework problems. The major topics we study are the assessment and management of foreign exchange risk exposure, the valuation of foreign investment, and international capital budgeting decisions. We also study many of the financial instruments available in the international financial markets. The course is organized around four topics of international financial management: a. The foreign exchange market, b. Foreign exchange exposure, c. Cross-border valuation, d. Selected international financial instruments. Prerequisites: BUAD 215x or BUAD 306 FBE 437: Entrepreneurial Finance: Financial Management for Developing Firms This course involves studying how to manage a growing, developing firm from a finance point of view. The course starts by examining different types of profit and the implications of each. Then management of the financial statements followed by extensive study of cash flow analysis is made. This is a common theme that runs through the entire course because developing firms run on cash, not profit. Next, the course develops criteria for a start-up business along with ways to develop the "package" and raise the money. Growing the company is the next topic and a different approach is undertaken from the usual cost of capital approach. Long and short-term sources of finance is then studied with particular reference to what is needed by developing firms. Cash management and accounts receivable management is then studied. Finally, the process of buying a company via a leveraged buy-out will be studied utilizing much of the material previously studied. Prerequisites: BUAD 215x or BUAD 306 FBE 440: Trading and Exchanges This course will introduce students to the theory and practice of securities trading at exchanges and in dealer networks. Special attention will be directed towards understanding: Why and how people trade The principals of proprietary trading Why market institutions are organized as they are How they are changing in response to information technology innovations The origins of liquidity, volatility, price efficiency, and trading profits The role of public policy in the market To address these questions, we must understand why and how institutions, dealers, and individuals trade. Understanding trader behavior is a primary course objective. At the end of this course, you should be able to: Solve various trading problems Recognize various trading styles Judge whether you will be a successful trader Evaluate and motivate brokers Design markets Effectively lobby policy-makers on market issues Prerequisites: BUAD 215x or BUAD

28 FBE 441: Investments This course is designed to give students a rigorous exposure to contemporary investment and portfolio theory and practice. Analytical tools for evaluation of stocks, bonds, derivative securities, and security portfolios will be presented. Students will demonstrate and refine their understanding and ability to apply analytical concepts through completion of course projects. Prerequisites: BUAD 215x or BUAD 306 FBE 443: Introduction to Forecasting and Risk Analysis Develops econometric tools for projecting economic activity and estimating financial risk. The course will emphasize econometric applications of data analysis to problems currently focused on by investment banks to price financial assets, and by consultants to project business activity. Versions of the Capital Asset Pricing Model and factor models will be estimated using stock market data to provide the portfolio manager with efficient estimates of market risk. Prerequisites: BUAD 215x or BUAD 306 and BUAD 310 FBE 458: Law, Finance, and Ethics This course provides the practical aspects and strategies of financing and managing businesses from incubation to going public. Emphasis is placed on the different business forms including the formation and operation of: sole proprietorships, general partnerships, limited partnerships, and limited liability companies; and corporations. With corporations the course will discuss the formation and operation of corporations, liability of officers, directors, and shareholders; state corporation laws and governance, mergers and acquisitions, securities, finance and antitrust laws. The course will also provide coverage regarding agency law, franchising, licensing; and other special forms of business, administrative law, credit, secured transactions, bankruptcy, and the liability of accountants. Prerequisites: None FBE 459: Financial Derivatives The objective of this course is to introduce students to financial derivatives, particularly futures, options, and swaps. Students will learn the basic mechanics and cash flows of these instruments; how the markets operate; what factors affect their price; how one can formulate strategies to use such instruments for hedging, speculation, and arbitrage. We will learn not only how prices are initially formed, but also how to value derivatives as market conditions change. We will explore different models from the pricing of options including binomial trees and the important Black- Scholes model. This course will focus on the tremendous range of possibilities offered by derivatives for firms and financial institutions in managing or hedging risk, in speculating efficiently on market beliefs, and in profiting from potential arbitrage operations. Specifically, we will study derivative instruments on stocks, fixed income securities, foreign exchange, interest rates, and commodities. Main topics will include futures, options, and swaps. The options section will include the binomial model, the Black-Scholes model, and current innovations in option markets. (continued on next page) 27

29 FBE 459: Financial Derivatives (continued) Students taking this course will gain a solid working knowledge of derivatives, which have become the buzzword of finance in the 1990 s. They will be able to use this foundation to analyze widely publicized cases such as the collapse of the Barings Securities, or the Orange County debacle, or losses (and subsequent lawsuit against Bankers Trust) by Proctor and Gamble. These cases have made evident the tremendous dangers of improper use of derivatives, and thus teach a valuable lesson. Prerequisites: BUAD 215x or BUAD 306 FBE 460: Mergers, Acquisitions and Restructuring The primary objective of the course is for each student to gain a well-rounded understanding of the major strategic, economic, financial, human resources, and governance issues of mergers, acquisitions, and restructuring. The M&A environment is a fast-paced, highly complex world where transforming transactions can have a major impact on both domestic and global economies and the consequences of error are large. Given the generally high level of mergers and acquisitions and their important role in the economy and in corporate strategy, it is likely that each of you will have some contact with mergers and acquisitions at some point early in your careers. This course is designed to provide you with a competent foundation in all areas of M&A practice, with an emphasis on the best practices. Prerequisites: BUAD 215x or BUAD 306 FBE 462: International Trade and Commercial Policy This course surveys the major topics in the theory of international trade. Like all branches of economics, this course is concerned with decision-making with respect to the use of scarce resources to meet desired economic objectives. It is consequently concerned with how international transactions influence such things as social welfare, income distribution, employment, growth, and the possible ways public policy can affect the outcomes. We will focus on such questions as: 1) What determines the basis for trade? 2) What are the effects of trade? 3) What determines the value and the volume of trade? 4) What factors impede trade flows? 5) What is the impact of public policy that attempts to alter the pattern of trade? We will cover most basic trade theories and their policy implications. In this course, we will analyze various trade and industrial policies, for instance, tariff, quota, VER, anti-dumping, customs union. We will also discuss the U.S. trade law, institutional framework of WTO/GATT, the Uruguay Round negotiations, the Multi-Fiber Agreement, and NAFTA. This course is concerned mainly with the non-monetary aspect of international economics. The monetary and balance of payments issues are only marginally discussed. Prerequisites: ECON 203 and ECON 205; or ECON 351xand ECON 352x. 28