FNCE603 - Basics Of Finance
FNCE 603 prepares students for the basic corporate finance class, FNCE 611. It covers the fundamental characteristics of stocks, bonds, and options and net present value. The course will demonstrate how to use Microsoft Excel and a financial calculator to perform these calculations.
FNCE604 - Preparation Course for the Corporate Finance (FNCE 612) Placement Exam
This course is intended for those students wishing to prepare for the Placement Exam into FNCE612. The FNCE612 course will fullfill the core requirement in financial analysis in half a semester, instead of the usual full semester in the FNCE 611 course. Only the students with some prior knowledge of financial analysis (either by course work or by practical experience), or with some strong analytical backgrounds should consider taking this course and the Placement Exam. Together FNCE 604 and FNCE 612 form the foundation for subsequent courses in corporate finance, security analysis, investments, and speculative markets. Their purpose is to develop a framework for analyzing a firm's investment and financing decisions. FNCE 604 will provide an introduction to present value and capital budgeting techniques under certainty. The FNCE 612 course will start where FNCE 604 stops, and will cover capital budgeting techniqes under uncertainty, asset valuation, the operation and efficiency of capital markets, and the optimal capital structure of the firm
Prerequisites: Since the emphasis is on the fundamental concepts underlying modern finance, the approach in both FNCE 604 and FNCE 621 will be analytical and rigorous, and requires some familiarity with accounting, mathematical, and statistical tools.
FNCE611 - Corporate Finance
This course serves as an introduction to business finance (corporate financial management and investments) for both non-majors and majors preparing for upper-level course work. The primary objective is to provide a framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. The approach is rigorous and analytical. Topics covered include discounted cash flow techniques; corporate capital budgeting and valuation; investment decisions under uncertainty; capital asset pricing; options; and market efficiency. The course will also analyze corporate financial policy, including capital structure, cost of capital, dividend policy, and related issues. Additional topics will differ, according to individual instructors.
Prerequisites: ACCT 611/612/613; MGEC 612/611; STAT 613/621 prerequisite or concurrent.
FNCE612 - Accelerated Corp Finance
This course is intended for students with prior knowledge of finance or with strong analytical backgrounds. Together with the pre-term preparation course (FNCE604), it forms the foundation for subsequent courses in corporate finance, corporate valuation, investments, and financial derivatives. Its purpose is to develop a framework for analyzing a firm's investment and financial decisions. This course will start where FNCE 604 ends. More precisely, it will provide an introduction to capital budgeting techniques under uncertainty, asset valuation, the operation and efficiency of capital markets, the optimal capital structure and dividend policy of the firm and options. In short, it will cover all the topics of a typical semester-long finance introduction class in six weeks. This course assumes that students are familiar with the material covered in FNCE 604. As a result, it is only available to those students who successfully passed the Finance Placement Exam at the end of the pre-term. This course is not suitable for students new to finance and with limited analytical backgrounds. This course is hard. The pace is fast and it requires a major investment of time and effort outside class.
Other Information: Q-1 Half Semester course
FNCE613 - Macroeconomics and the Global Economic Environment
This course is required of all students except those who, having prior training in macroeconomics, money and banking, and stabilization policy at an intermediate or advanced level, can obtain a waiver by passing an examination. The purpose of FNCE 613 is to train the student to think systematically about the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment within which business and financial decisions are made. The course emphasizes the use of economic theory to understand the workings of financial markets and the operation and impact of government policies. Specifically, the course studies the determinants of the level of national income, employment, investment, interest rates, the supply of money, inflation, exchange rates, and the formulation and operation of stabilization policies.
FNCE614 - CORPORATE FINANCE (Half CU)
This course serves as an introduction to corporate investments for non-majors. The primary objective is to provide a framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. The approach is rigorous and analytical. Topics covered include discounted cash flow techniques, corporate capital budgeting and valuation, investment decisions under uncertainty, and capital asset pricing. This course will not cover the following topics included in FNCE 611, the full semester Corporate Finance course: market efficiency, corporate financial policy (including capital structure, cost of capital, dividend policy, and related issues), and options. Please Note: This course will not count towards the Finance Major. Format: Primarily lecture. Grading based on problem sets, one or two cases, and a final exam.
Prerequisites: ACCT 611/612/613; MGEC 612/611; STAT 613/621 prerequisite or concurrent.
FNCE615 - MACROECONOMICS AND THE GLOBAL ECONOMIC ENVIRONMENT (Half CU)
FNCE 615 is a half-semester overview of macroeconomics. It is intended strictly for non-Finance majors. Any student who contemplates majoring in Finance should be aware that this course does not count in any way toward the Finance major. This course is new to the curriculum and is still under design. It will likely begin with the national income and products, which are the basic source of data on important macroeconomic data such as GDP, consumption, investment, exports and imports as well as prices. The course will also discuss other major sources of macroeconomic data, such as the monthly employment report and the consumer price index. These data descriptions will provide students with a basic level of macroeconomic literacy and will serve as the basis for analyzing specific topics and issues in macroeconomics. At of this writing, the set of topics and issues is still to be determined, but students should be aware that the half-semester format of the course will limit the breadth and depth of topics. Please Note: This course will not count towards a Finance Major.
Prerequisites: FNCE 611 or FNCE 612
FNCE717 - Financial Derivatives
The purpose of this course is to provide the student with the necessary skills to value and to employ options, futures, and related financial contracts. In order to provide a useful treatment of these topics in an environment that is changing rather rapidly, it is necessary to stress the fundamentals and to explore the topics at a technical level. The topics that will be covered include the valuation of futures contracts on stock indices, on commodities and Treasury instruments; the valuation of options, empirical evidence, strategies with respect to these assets, dynamic asset allocation strategies, or which portfolio insurance is an example, swaps, and the use (and misuse) of derivatives in the context of corporate applications. One-third of the course will be devoted to futures, a third to options, and a third to their applications. Many of the applications will be sprinkled along with the coverage of futures and options.
Prerequisites: The following introductory Finance and Statistics courses are recommended but not required. FNCE 611 or FNCE 612; STAT 613: FNCE 613 may be taken concurrently.
FNCE719 - International Financial Markets
FNCE 719 is a course on international financial markets and exchange rates. Topics include pricing in the foreign currency and Eurocurrency markets, use of forward exchange for hedging, short-term returns and market efficiency in the international money markets, foreign currency options, international capital asset pricing, pricing of foreign currency bonds, currency swaps, Eurocurrency syndicated loans, foreign currency financing and exposure management.
Prerequisites: FNCE 611 or FNCE 612; FNCE613 may be taken concurrently.
FNCE720 - Investment Management
This course is designed to acquaint the student with the concepts of portfolio analysis in the general area of institutional investment management. The course discusses principles for managing financial assets. These principles apply, for example, to managing corporate pension funds, bank-administered trusts, and other institutional funds. Students will learn how to establish appropriate investment objectives, develop optimal portfolio strategies, estimate risk-return tradeoffs, and evaluate investment performance. Many of the latest quantitative approaches are discussed.
Prerequisites: FNCE 611 or FNCE 612; FNCE 613; STAT 613.
FNCE721 - Real Estate Investment: Analysis and Financing
This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. There are case studies and two mid-terms, (depending on instructor). Cross-listed with REAL 721.
Prerequisites: FNCE 611 or FNCE 612.
Other Information: Lecture with discussion required
FNCE725 - Fixed Income Securities
FNCE 725 is a rigorous study of fixed income securities, including default-free bonds, floating rate notes, and corporate bonds. Closely related financial instruments such as forwards and futures on fixed income securities, bond options, and interest rate swaps are also examined. In addition to analyzing specific types of fixed income securities, there will be an examination of the tools used in bond portfolio management.
Prerequisites: FNCE 611 or FNCE 612; FNCE 613; STAT 613.
FNCE726 - Advanced Corporate Finance ( Course Syllabus - 2010A)
The objective of this course is to study the major decision-making areas of managerial finance and some selected topics in financial theory. The course reviews the theory and empirical evidence related to the investment and financing policies of the firm and attempts to develop decision-making ability in these areas. This course serves as an extension of FNCE 611. Some areas of financial management not covered in FNCE 611 are covered in FNCE 726. These may include leasing, mergers and acquisitions, corporate reorganizations, financial planning, and working capital management, and some other selected topics. Other areas that are covered in FNCE 611 are covered more in depth and more rigorously in FNCE 726. These include investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend policy.
Prerequisites: FNCE 611 or FNCE 612; FNCE 613.
FNCE728 - Corporate Valuation
The focus of this course is on the valuation of companies. Topics discussed include discounted cash flow techniques and valuation using alternative valuation techniques such as price multiples. Emphasis is on developing the required information for valuation from financial statements and other information sources.
Prerequisites: Minimum of normal first-year courses in accounting, economics, statistics, and FNCE 611 or 612; FNCE 613 (further coursework in financial accounting such as ACCT 742 is very useful).
FNCE730 - Urban Fiscal Policy
The purpose of this course is to examine the financing of governments in the urban economy. Topics to be covered include the causes and consequences of the urban fiscal crisis, the design of optimal tax and spending policies for local governments, funding of public infrastructures and the workings of the municipal bond market, privatization of government services, and public financial systems for emerging economies. Applications include analyses of recent fiscal crises, local services and taxes as important determinants of real estate prices, the infrastructure crisis, financing and the provision of public education, and fiscal constitutions for new democracies using South Africa as an example.
Prerequisites: MGEC 621, FNCE 611
Other Information: Lectures. There is a mid-term and final exam.
FNCE731 - International Corporate Finance
This course analyzes financial problems corporations face that result from operating in an international environment. Major topics covered are corporate strategy and the decision to invest abroad, international portfolio diversification, managing exchange risk, taxation issues, cost of capital and financial structure in the multinational firm, and sources of financing. Departmental Website: https://fnce.wharton.upenn.edu/ Registration: Registration for MBA electives is handled through the MBA Course Auction. For questions about core courses or MBA electives that don't appear in the course auction please contact the MBA Program Office. Non-MBAs interested in graduate classes must work throught the academic department and the MBA Program Office.
Prerequisites: FNCE 611 or 612 - A thorough knowledge of Corporate Finance is assumed
FNCE732 - International Banking
This course focuses on international financial institutions and international banking activities. We will examine how current and historical events are reshaping the industry. We will focus on the basic analytics of managing a bank's exposure to liquidity, credit, market and country risk. In addition, we will consider how to evaluate and compare the risk exposures and performance of individual banks. Throughout the semester we will discuss public policy issues such as international debt crises and regulation.
Prerequisites: FNCE 611 or 612; FNCE 613. One, but not both, can be taken concurrently.
FNCE738 - Capital Markets - formerly Funding Investments ( Course Syllabus - 2013A)
This course examines the available corporate securities that firms can use to finance investment. The course will focus on: (1) the design of these securities (Why do bonds have embedded options? What is the role of preferred stock?); (2) the issuing process for these securities (What do investment banks do? Is the underwriting process important for the cost of capital?); (3) the pricing of these securities (How are credit risk in bonds and loans priced?) The securities covered include corporate and junk bonds, bank loans, common and preferred equity, commercial paper, securitization, as well as some recent innovations. Other topics include the role of embedded options in corporate bonds; the role of bank and loan covenants; the function of bond rating agencies; exchange offers; prepackaged bankruptcies; bankruptcy Chapter 11; workouts; debtor-in-possession financing; and pricing credit risk. The course is designed to be complementary to Advanced Corporate Finance and Fixed Income Securities.
Prerequisites: FNCE 611 or 612; FNCE 613.
FNCE739 - Behavioral Finance ( Course Syllabus - 2011A)
There is an abundance of evidence suggesting that the standard economic paradigm - rational agents in an efficient market - does not adequately describe behavior in financial markets. In this course, we will survey the evidence and use psychology to guide alternative theories of financial markets. Along the way, we will address the standard argument that smart, profit-seeing agents can correct any distortions caused by irrational investors. Further, we will examine more closely the preferences and trading decisions of individual investors. We will argue that their systematic biases can aggregate into observed market inefficiencies. The second half of the course extends the analysis to corporate decision making. We then explore the evidence for both views in the context of capital structure, investment, dividend, and merger decisions.
Prerequisites: FNCE 611 or 612; FNCE 613. Recommended: FNCE 720 and FNCE 726.
FNCE750 - Venture Capital and the Finance of Innovation
This course covers the finance of technological innovation, with a focus on the valuation tools useful in the venture capital industry. These tools include the "venture capital method," comparables analysis, discounted cash flow analysis, contingent-claims analysis, and real options. The primary audience for this course is finance majors interested in careers in venture capital or in R&D-intensive companies in health care or information technology.
Prerequisites: FNCE 611 and FNCE 613 - FNCE 613 may be taken concurrently
FNCE751 - The Finance of Buyouts and Acquisitions ( Course Syllabus - 2014A)
The focus of this course is on buying (or acquiring controlling stakes in) firms. The main topics to be covered are mergers and friendly acquisitions, hostile takeovers and buyouts. Using case studies, the course surveys the drivers of success in the transactions. While issues regarding motive and strategy will be discussed, financial theory would be the main lens used to view these control acquiring transactions. This will allow students to (1) evaluate transactions through valuation approaches and (2) structure deals employing financial innovation as a response to legal framework and economic frictions. This course should be of interest to students interested in pursuing careers as private equity investors, advisors in investment banking and corporate managers that deal with these issues. This course assumes familiarity with valuation analysis. During the spring semester students are not permitted to take this course pass fail.
Prerequisites: Pre-Requisites FNCE 611 and FNCE 613 (Or 612) - C0-Requisites FNCE 726 or FNCE 728 may be taken concurrently.
FNCE754 - IMPACT INVESTING
This course explores Impact Investing, a discipline that seeks to generate social benefits as well as financial returns. From tiny beginnings, the Impact Investment space has expanded and now commands significant attention from policymakers, wealthy and public-spirited individuals, academia and, not least, the world's largest asset managers and philanthropic foundations. Evangelists believe it may be the key to freeing the world from poverty. Skeptics think it will remain confined to the boutique. Regardless, Impact Investing is becoming a distinct career specialization for finance professionals despite the diverse skillset each must have and the uncertainty of the new field's growth.
Prerequisites: Prerequisites This course has no specific prerequisites, but given its wide-ranging subject matter, students will benefit from completion of any of the following Wharton courses: FNCE 613 Macroeconomics and the Global Economic Environment; FNCE 720Investment Management; FNCE 738 Capital Markets; and FNCE 895 Private Equity. Coursework or practical experience in microeconomics, development economics, international philanthropy, Non-Governmental Organizations, financial risk management and political risk analysis will also be useful.
FNCE756 - FINANCE ENERGY
The objective of this course is to provide students with detailed knowledge of corporate structures, valuation methods, project finance, risk management practices, corporate governance issues, and geo-political risks in the energy industry. In general, this course seeks to provide students with an overall context for understanding energy issues and risks, and how these might affect financing and investment decisions for both providers of energy and end-users of energy.
Prerequisites: The prerequisites for the course are FNCE 726-Advanced Corporate Finance or FNCE 728-Corporate Valuation. Students who receive permission to enroll without the prerequisites are expected to review the relevant topics as necessary to meet the requirements of the class.
FNCE890 - Advanced Study Project in Finance -
Prerequisites: Indicated in the announcement of seminar topics before the Auction-------- REAL OPTIONS - Prerequisities: FNCE 601 and FNCE 602
FNCE891 - ADVANCED STUDY PROJECT - CORPORATE RESTRUCTURING
The objective of this course is to familiarize students with financial, legal and strategic issues associated with the corporate restructuring process. The main focus of the course will be on the restructuring of financially distressed firms. We'll begin by reviewing the financial instruments commonly used by risky firms (leveraged loans and high-yield bonds) and learn to interpret the contracts that govern them. We'll then survey a variety of restructuring methods (out-of-court workouts, exchange offers, prepackaged and pre-negotiated bankruptcies, Chapter 11 reorganizations, international insolvency practices) available to troubled firms and study the dynamics of the restructuring process through a number of historical and current case studies. Finally, we'll consider distressed debt as an asset class and develop techniques for investing in distressed securities. The course will provide students with tools to value distressed companies, understand the legal framework governing bankruptcy and reorganization, and navigate the key strategic issues facing managers and investors in distressed companies. It willalso provide students with a specialized vocabulary and important facts about the restructuring industry, distress investing, and leveraged financial markets.
Prerequisites: FNCE 611 or 612; FNCE 613; FNCE 726 and FNCE 728 or permission of the professor.
Other Information: The course's content will be presented using a mixture of lectures, case studies, and guest speakers. The speakers will be Wharton alumni with leadership roles in the restructuring industry as managers, advisors, and investors.
FNCE892 - Financial Engineering
This class covers advanced pricing models for equity, fixed income and credit derivatives. It aims at: 1) Introducing the main models used in practical applications to price and hedge derivatives; 2) Understanding their comparative advantages and limitations, as well as how they are calibrated and applied. As part of team assignments, students will be asked to calibrate and implement the models introduced in the class using software of their choice.
Prerequisites: Students are required to either take Financial Derivatives or Fixed Income with a grade of A- or better. Students who do not satisfy this prerequisite should obtain the instructor's permission to enroll.
FNCE893 - Global Monetary and Financial Institutions: Theory and Practice
Goal: Provide the future global manager and economist the knowledge on the inter-workings of financial markets and policies set by central banks, regulators and governments. The core of the course will connect between the micro-structure of financial markets, their institutional frameworks and the macroeconomy in the US, the EU and other countries. The course will heavily use the data and events of the 2007-2010 financial crisis. Requirements: Final and mid term examinations and a term paper that provides a description and analysis of one or more of the main topics for a certain country. References: Use one or more textbooks as well as additional books, reports and analysis that were recently published on each of the topics
Prerequisites: FNCE 611 or 612; FNCE 613; STAT 613.
FNCE894 - Managing Fixed Income Portfolios ( Course Syllabus - 2014A)
The goal of this course is to teach you how to manage a real portfolio of Treasury, sovereign, corporate and mortgage bonds. We develop three basic models for the yield curve, for credit (and sovereign) spreads, and for mortgage spreads. We use theses models to find value in the bond market. To implement the concepts learned in class, students form teams to manage a paper portfolio using Barclays Point, a state-of-the-art management system. Your team will trade a $1 billion portfolio of bonds for which your goal will be to outperform the Barclays Aggregate Index. You trade real securities at real prices - only the money is fake. There is a MANDATORY Tutorial on Barclays POINT system on Friday, January 23, 2015 from 9:00 AM to 12:00 noon.
Prerequisites: FNCE 725
FNCE895 - Private Equity.
The course will be a survey of the private equity asset class. Its objective is to provide an understanding of the concepts, agents, and institutions involved in the late stage corporate private equity market in the U.S. and around the globe. It will examine the buyout market and the activities of buyout funds from the differing perspectives of private equity investors, private equity fund sponsors, and managers of the portfolio companies. The course will be taught almost entirely with cases. Distinguished Wharton alumni in the private equity industry will be our guest speakers for many of the cases based on transactions they concluded. While this course is primarily intended for graduate students, admission may be granted to a limited number of interested undergraduate students. PLEASE NOTE: this course may be recorded for live or subsequent distribution, display, broadcast, or commercialization in any media, including video, audio, or electronic media. For additional information, see the course syllabus or contact the department.
Prerequisites: FNCE 726 and FNCE 751 or permission from the instructor.
FNCE896 - Finance in Europe
This is a short seminar on finance in Europe. Its objective is to bring students, academics and several industry experts together to study financial markets, practice, and institutions in Europe. Course Content: The course will primarily examine following areas: 1.Current challenges in European markets and Euro zone 2.Political economy of European Union 3.Alternative Investments 4.Investment Banking & Cross Border Mergers and Acquisitions We will cover the above topics by studying practice and transactions in Europe with a comparison to USA and rest of the world. This is a half unit course and it is designed for Wharton MBAs. Exceptionally motivated undergraduate students are also welcome to take the course.
FNCE897 - FINANCE IN THE MIDDLE EAST & NORTH AFRICA
This is a Wharton Global Modular Course on finance in the Middle East and North Africa. Its objective is to bring students, academics and industry experts together to study financial markets, practice, and institutions in this region.
Other Information: Course Format - This course will be taught through cases and lectures. Guest Lecturers - Distinguished practitioners will lecture and conduct case discussions. Our guest lecturers will bring their experience and insights to the classroom.