Course Descriptions

FNCE100 - Corporate Finance

This course provides an introduction to the theory, the methods, and the concerns of corporate finance. The concepts developed in FNCE 100 form the foundation for all elective finance courses. The main topics include: 1) the time value of money and capital budgeting techniques; 2) uncertainty and the trade-off between risk and return; 3) security market efficiency; 4) optimal capital structure, and 5) dividend policy decisions. During the fall semester there are honors sections of FNCE 100 offered. The seats in the honors sections are awarded through an application process. Please go to https://fnce.wharton.upenn.edu/programs/course-applications/ for additional information.

Prerequisites: ECON 10 or ECON 001 or ECON 002, MATH 104, ACCT 101 and STAT 101. Acct 101 and Stat 101 may be taken concurrently.

FNCE101 - Monetary Economics and the Global Economy ( Course Syllabus - 2013A)

This is an intermediate-level course in macroeconomics and the global economy, including topics in monetary and international economics. The goal is to provide a unified framework for understanding macroeconomic events and policy, which govern the global economic environment of business. The course analyzes the determinants and behavior of employment, production, demand and profits; inflation, interest rates, asset prices, and wages; exchange rates and international flows of goods and assets; including the interaction of the real economy with monetary policy and the financial system. The analysis is applied to current events, both in the US and abroad. During the spring semester there are honors sections of FNCE 101 offered. The seats in the honors sections are awarded through an application process. Please go to https://fnce.wharton.upenn.edu/programs/course-applications/ for additional information.

Prerequisites: ECON 010 [or ECON 001, ECON 002] and MATH 104. Students cannot receive credit forboth FNCE 101 and ECON 102 [ECON 4] WHARTON STUDENTS ARE REQUIRED TO TAKE FNCE 101

FNCE103 - Business Economics

The course covers introductory microeconomics and macroeconomics with particular attention given to global and long-run growth issues. The microeconomic portion introduces the discipline and fundamental tools of economics. It proceeds to study the workings of a price system and theories of consumer and firm decision-making. It further analyzes particular market structures characterized by perfect and imperfect competition, reviews the strengths and weaknesses of a market economy, and considers the government's role in correcting market failures and promoting competition. The macroeconomic portion studies the domestic and international forces that govern the determination of the aggregate level of economic activity, and pays particular attention to the determinants of long-run economic growth and stabilization policies used to dampen business cycles. The course concludes with global issues including the determinants of trade, trade policy, capital mobility, international financial instability, and international economic integration and the extent of globalization.

Other Information: FRESHMAN JOSEPH WHARTON HONORS SCHOLAR STUDENTS ONLY, Non-Honors students need permission.

FNCE203 - Advanced Corporate Finance ( Course Syllabus - 2013A)

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 100 (FNCE 611). Someareasof financial management not covered in FNCE 100 are covered in FNCE 203. 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 100 are covered more in depth and more rigorously in FNCE 203. These include investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend policy. During the Spring semester Professor Opp does not allow students to take this course pass/fail.

Prerequisites: FNCE 100, (FNCE 611), FNCE 101, (FNCE 613) STAT 101, and STAT 102 Professor Opp does not require FNCE 101 as a prerequisite

FNCE205 - 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 100 and FNCE 101 (FNCE 611 & FNCE 613) and STAT 101-102

FNCE206 - 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, of 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 101 and STAT 102 are recommended and can be taken concurrently.

FNCE207 - Corporate Valuation ( Course Syllabus - 2011A)

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: FNCE 100, (FNCE 611) ACCT 101, AND STAT 101 111 OR EQUIVALENT ACCT 101 RECOMMENDED

FNCE208 - International Corporate Finance

Analyzes financial problems corporations face that result from operating in an international environment. Major topics include managing exchange risk through hedging and financing, measuring exchange rate exposure, calculating the cost of capital for foreign operations, assessment of sovereign risks, capital budgeting from a project and parent perspective, and international taxation.

Prerequisites: A thorough knowledge of FNCE 100 (FNCE 611) is assumed.

FNCE209 - Real Estate Investment: Analysis and Financing

This course provides a broad 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 market tools used in real estate. There are case studies and two midterms, depending on instructor.

Prerequisites: FNCE 100 & STAT 101 - STAT 102

FNCE219 - International Financial Markets

This course focuses 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 100, (FNCE 611), FNCE 101,(FNCE 613) STAT 101.

FNCE220 - 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 100, FNCE 101.

FNCE230 - Urban Fiscal Policy

A detailed examination of the financing of local governments, suburbs, and center cities within the metropolitan economy.

Prerequisites: FNCE 101

FNCE235 - Fixed Income Securities ( Course Syllabus - 2013C)

FNCE 235 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 100, (FNCE 611) FNCE 101 (FNCE 613).

FNCE238 - Capital Markets - Formerly Funding Investments

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 in 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 100,(FNCE 611), FNCE 101 (FNCE 613).

FNCE239 - Behavioral Finance

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 100, FNCE 101. Recommended: FNCE 205 and FNCE 203

FNCE250 - 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. 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 100 (FNCE 611) and FNCE 101 (FNCE 613)(FNCE 101-FNCE 613 may be taken concurrently)

FNCE251 - The Finance of Buyouts and Acquisitions ( Course Syllabus - 2014A)

The course focuses on financial tools, techniques, and best practices used in buyouts (financial buyers) and acquisitions (strategic buyers). While it will touch upon various strategic, organizational, and general management issues, the main lens for studying these transactions will be a financial one. It will explore how different buyers approach the process of finding, evaluating, and analyzing opportunities in the corporate-control market; how they structure deals and how deal structure affects both value creation and value division; how they add value after transaction completion; and how they realize their ultimate objectives (such as enhanced market position or a profitable exit). The course is divided into two broad modules. The first module covers mergers and acquisitions, and the second one studies buyouts by private equity partnerships. During the spring semester this course cannot be taken pass/fail.

Prerequisites: FNCE 100 (FNCE611), FNCE 101 (FNCE 613), Co-Requisite FNCE 203 (FNCE 726) Advanced Corporate Finance or FNCE 207 (FNCE 728) Corporate Valuation.

Other Information: FORMAT: Lectures, cases, and guest speakers. Grading: Class participation, two students projects, two exams.

FNCE254 - 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 101 Monetary Economics and the Global Economy; FNCE 205 Investment Management; FNCE 238 Capital Markets; and FNCE 395 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.

FNCE256 - 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 203-Advanced Corporate Finance or FNCE 207-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.

FNCE382 - ASP-Energy Finance

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 203-Advanced Corporate Finance or FNCE 207-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.

FNCE391 - CORPORATE RESTRUCTURING

The objective of this course is to familiarize students with the financial, legal and strategic issues associated the corporate restructuring process. The main focus of the course will be on restructuring financially distressed firms. We will 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 (out-of-court workouts, exchange offers, prepackaged and pre-negotiated bankrupticies, distressed asset sales, and Chapter 11 reorganizations) available to troubled firms and study the dynamics of the restructuring process through a number of historical and current case studies. Finally, we will 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 legalframework governing bankruptcy and reorganization in the U.S. and other countries, and navigate the key strategic issues facing managers and investors in distressed companies. It will also provide students with a specialized vocabulary and important facts about the restructuring industry, distress investing, and leveraged financial markets. Course content is a mixture of lectures, case studies and guest speakers in the restructuring industry.

Prerequisites: The prerequisites for the course are FNCE 203/726-Advanced Corporate Finance or FNCE 207/728 Corporate Valuation. The main purpose of the prerequisites is to ensure that students have a solid understanding of corporate finance (particularly an undstanding of capital structure, accounting and financial statement analysis, valuation methods, and cost of capital), so that we spend more time on the nuances of distressed situations and less time on reviewing background material. Students who receive permission to are expected to review the relevant topics as necessary to meet the requirements of the class.

FNCE392 - Financial Engineering ( Course Syllabus - 2011A)

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. In spite of the fact that every effort will be made to introduce the various models and techniques as intuitively as possible, the class is by its nature very quanitative and will require a significant amount of work.

Prerequisites: Students are required to either take Financial Derivatives or Fixed Income witha grade of A- or better. Students who do not satisfy this prerequisite should obtain the instructor's permission to enroll.

FNCE393 - Global Monetary and Financial Stability Policy

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: FNCE100, FNCE 101 and STAT101 or STAT 102

FNCE394 - 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 spreads, and for mortgage spreads. We use these 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 $500 million 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 18, 2012 from 9:00 AM to 12:00 noon.

Prerequisites: FNCE 235 Fixed Income Securities

FNCE395 - 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. PLEASE NOTE: While this course is primarily intended for graduate students, admission may be granted to a limited number of interested undergraduate students. Be aware that 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 203-Advanced Corporate Finance and FNCE 251-Finance of Buyouts and Acquisitions or permission from the professor

FNCE396 - 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.

FNCE397 - FNCE in Mid East & N Afr

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.

FNCE399 - Supervised Study in Finance

Integrates the work of the various courses and familiarizes the student with the tools and techniques of research.

Prerequisites: Senior standing, 3.4 grade point average, and permission of a Finance Department standing faculty member.