Finance Course Descriptions

FIN 100: Reading Financial Information, 2 credits

Course material will introduce the student to information contained in financial reports, information reported in financial publications and topics addressed in the media, including the Internet.

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the world of financial information.
2. Understand the world of finance through the reading of financial information.
3. Be able to distinguish between the different forms of business organization.
4. Have been exposed to the Wall Street Journal on a daily basis.
5. Understand, at a basic level, a corporate annual report.
6. Understand, at a basic level, stocks, corporate bonds, municipal bonds, government securities, mutual funds, and currencies.
7. Understand, at a basic level, the Dow Jones Industrial Average, the NYSE Composite Index, and Standard & Poor's indexes.

FIN 101: Introduction to Banking and Finance, 4 credits

This course is designed to build an understanding of the various banking and finance industries through an examination of the segments of these industries and appraisals of the financial and management skills that future managers need to succeed. The students gain insights into the development and make up of the different industries that banking and finance majors typically enter through popular trade magazines, newspapers, internet sources, and guest speakers.

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the different segments of the banking and finance industries.
2. Be aware of the major types of job responsibilities and the markets that different jobs serve.
3. Understand how economic, political, social, technological and demographic forces effect the banking and finance industries.
4. Be aware of the multiple forces shaping the future of the banking and finance industries.
5. Be aware of the operational and management challenges leading these career fields.
6. Be able to analyze a career in the banking and finance industries.
7. Be able to evaluate the employment outlook in the various sectors of the banking and finance industries.
8. Be aware of the need for and potential from expanded educational opportunities.

FIN 255: Principles of Banking, 4 credits

Introduction to the commercial banking function and the operations and management of state and national banks. Emphasis on the general management functions, with special attention to management of deposits, loans, investments, liquidity, trusts, and other service functions.

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the organizational structure of commercial banks.
2. Be able to analyze bank financial statements and bank capital.
3. Understand various types of loans and how they are used by different segments of the economy.
4. Have an appreciation for, and historical perspective of, bank regulation, especially the Monetary Control Act of 1980.
5. Understand legal aspects of banking.
6. Understand commercial banking's relationship to other financial institutions.
7. Understand the implications of international lending.
8. Understand liquidity management, including deposit alternatives and bank investments.
9. Understand merger and acquisition concepts.

FIN 301: Financial Management, 4 credits

Study of the theoretical and conceptual framework that the financial manager uses to reach decisions. Particular emphasis is given to the finance function and its relevance to the management of an enterprise. Analysis, problem-solving techniques, and decision-making tools are emphasized.
Prerequisite: ACC 243

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the objectives of financial management and the importance of the financial manager to the organization.
2. Understand how to evaluate the financial performance of the firm.
3. Understand financial forecasting methods and their necessity to the strategic growth of the firm.
4. Understand the financial effects of all forms of leverage on the firm.
5. Be aware of a variety of methods of financing and controlling the current assets of the firm.
6. Understand the time value of money.
7. Understand how financial assets are valued and how investors establish the rates of return they require.
8. Understand the methods and procedures of determining the firm's cost of capital.
9. Understand the various methods for ranking capital investment proposals.
10. Understand the impact of risk on the decision-making process.
11. Understand the flow of funds through the financial intermediaries to the capital markets.
12. Understand the virtues and drawbacks of debt versus equity financing.

FIN 321: Financial Management for Majors, 4 credits

FIN 321 is required for those students seeking an associates degree or BBA in (a) banking and finance or (b) accounting OR those students desiring a BBA with a minor in accounting. This course is a study of the theoretical and conceptual framework that the financial manager uses to reach decisions. The course will delve deeper into theoretical financial concepts than FIN 301 to better prepare students for their further studies in finance and accounting. Particular emphasis is given to the finance function and its relevance to the management of an enterprise. Analysis, problem-solving techniques, and decision-making tools are emphasized.
Prerequisite: ACC 243

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the objectives of financial management and the importance of the financial manager to the organization.
2. Understand how to evaluate the financial performance of the firm.
3. Understand financial forecasting methods and their necessity to the strategic growth of the firm.
4. Understand the financial effects of all forms of leverage on the firm.
5. Be aware of a variety of methods of financing and controlling the current assets of the firm.
6. Understand the time value of money.
7. Understand how financial assets are valued and how investors establish the rates of return they require.
8. Understand the methods and procedures of determining the firm's cost of capital.
9. Understand the various methods for ranking capital investment proposals.
10. Understand the impact of risk on the decision-making process.
11. Understand the flow of funds through the financial intermediaries to the capital markets.
12. Understand the virtues and drawbacks of debt versus equity financing.

FIN 360: Foundations of Financial Planning, 4 credits

In this course is presented an introduction to the basics of personal financial planning w/ particular emphasis on financial planning basics, asset management, mutual funds, retirement planning and taxation. The financial planning process, as well as the legal, ethical, and regulatory issues affecting financial planners will be covered. Finally, risk management and insurance practices are discussed, allowing the student to identify a client's risk exposure.
Prerequisite: ACC 242

Goals and Objectives
By the end of this course, Northwood wants students to:

1. To understand the regulatory and ethical considerations for financial planners.
2. Introduction to the Insurance Industry.
3. Introduction to risk management and related legal issues.
4. To understand about the variety of investment vehicles that may be included in a client's portfolio.
5. To understand client assessment considerations, economic factors, valuation methods, asset allocation techniques, and portfolio evaluation.
6. To understand the fundamentals of individual income taxation, the tax implications of various types of businesses, tax-advantaged investments.
7. To understand employee compensation issues and planning.
8. To understand retirement savings need analysis, qualified retirement plan design, Social Security, Medicare, and more.
9. To understand the process of developing an estate plan.

FIN 366: Cases and Problems in Banking and Financing, 4 credits

Case study approach to practical application of banking principles to solve problems based upon information provided by banks and bank regulatory agencies.
Prerequisite: FIN 255 and MGT 230

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Be able to research and evaluate current banking issues.
2. Understand decision making in a banking environment.
3. Know the regulatory issues associated with banking.
4. Understand the functions of various banking organizations.
5. Have visited various banks, etc., to learn of products available.
6. Will have the ability to analyze various banking functions (loans, deposits, etc.)
7. Understand perspectives of various departments of a bank.
8. Be able to evaluate issues associated with bank expansion.
9. Have the ability to price various products.
10. Be able to understand management issues of a financial institution.

FIN 375: Investments, 4 credits

An introduction to the basics of investing with emphasis on equities, debt, preferred stocks, convertible securities, rights and warrants, options, mutual funds, and fixed and variable annuities, the markets on which each is traded, as well as fundamental and technical analysis.
Prerequisites: FIN 321; ECN 221, 222

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Have a broad overview of investing with special emphasis on why, how, when, and where to invest, as well as the tools used to measure performance.
2. Have an understanding of the stock markets, the bond market, the options markets, and the commodities markets.
3. Have an understanding of equity, especially as it relates to dividends, capital gains, and the valuation of such.
4. Have an understanding of corporate, government, and agency bonds, mortgages, and preferred stocks.
5. Have an understanding of financial statement analysis as it relates to investing.
6. Understand convertible securities, rights, and warrants with special emphasis on conversion prices and ratios, the advantages and disadvantages of such.
7. Have an in-depth understanding of put and call options, as well as stock index futures options.
8. Have an understanding of mergers and acquisitions, new stock issues, stock repurchase strategies, as well as P/E ratio analysis.
9. Have an understanding of commodities, currencies, interest rates, and how each impacts the financial markets.

FIN 376: Portfolio Management, 4 credits

Continuation of FIN 375, with particular emphasis on the intricate nature of assets contained in sophisticated securities. Concentration will be on the management of portfolios with special emphasis paid to growth strategies, income strategies, retirement planning, tax advantaged investing, stock brokerage trends, and overall financial planning.
Prerequisite: FIN 375

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Have a strong understanding of equity markets, debt markets, mergers and acquisitions, new stock issues, stock repurchase strategies, commodities, currencies, interest rates, and how each impacts the overall financial markets.
2. Have an understanding of and an appreciation of the international securities markets, with special emphasis on risk and return, diversification, and methods of participating in foreign markets.
3. Thoroughly understand mutual funds, with special emphasis on types of funds, fund objectives, distribution and taxation, and performance averages.
4. Thoroughly understand investment strategies, with special emphasis on growth investing, income investing, retirement planning, estate planning, and tax advantaged investing.
5. Understand different methods of portfolio optimization, asset allocation, and portfolio protection.
6. Be well versed in the importance of following investment policy and the preferred components of such a policy so as to abide by the 'prudent person rule'.
7. Thoroughly understand career options within the securities business, especially stock brokers and hybrids, financial planners, trust officers, and insurance brokers.

FIN 401: International Finance, 4 credits

A comprehensive overview of the international financial system. Considers foreign currency relationships as well as hedging and techniques in risk management. The course explores international banking, securities, and corporate finance with an emphasis on case studies and simulated market participation.
Prerequisite: FIN 301 or 321 and ECN 400

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the various banking systems in use world-wide.
2. Be able to apply the Purchasing Power Parity theory.
3. Be able to advance the use of Interest Rate Parity theory.
4. Be able to study the Fisher effect world-wide.
5. Develop an appreciation of the impact of inflation on International Finance and Banking.
6. Understand the role of the Central Banks throughout the world.
7. Understand the use of hedging instruments in the global economy.
8. Have a working knowledge of the various tax structures in place world-wide.
9. Understand the various international financial markets.
10. Understand the impact of currency translations on financial statements.
11. Appreciate the importance of wise financial planning prior to entering into a Foreign Direct Investment.
12. Have a complete understanding of the Eurodollar and Eurobond market.

FIN 422: Real Estate Finance, 4 credits

This course will explore a comprehensive overview of the various types of real estate markets in the United States and how purchases and sales are financed. Students will examine both standard and creative financing/structuring techniques used with residential real estate and income real estate properties. Purchase, sale, lease, and underwriting issues as well as real estate investment analysis techniques will be fully explored. The effects of market and economic conditions on the real estate markets are analyzed.
Prerequisite: FIN 321

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the legal considerations in residential and commercial real estate.
2. Be able to analyze the financing of residential real estate as it applies to all mortgages (basic fixed rate financing through "creative financing").
3. Apply financing principles to the underwriting and financing of residential real estate.
4. Be proficient in analyzing the full effects of residential real estate financing decisions.
5. Understand commercial property markets.
6. Be proficient at developing a comprehensive valuation of income properties.
7. Apply financing techniques to residential and corporate real estate construction projects.
8. Apply financing concepts to land development projects.
9. Have an in depth understanding of the secondary mortgage market.
10. Have an in depth understanding of the real estate investment trusts.
11. Be proficient at the analysis of real estate investment performance.
12. Understand the role of real estate in investment portfolios.

FIN 423: Personal Financial Planning, 1-4 credits

Designed for those senior students not majoring in finance who will be graduating and leaving the university to pursue their chosen careers, this course will introduce the basic financial planning tools that are needed to acquire a comfortable financial life in the future. Skill topics will include saving, non-retirement and retirement investing, mutual fund/stock investments, house purchasing/renting and changing the financial plan as the student’s career and family situations advance throughout their life. Courses offered for more than one credit will delve further into the course topics based on the amount of credit hours.
Prerequisite: Senior Status

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand the "pay yourself first" concept of saving.
2. Be able to see the payback from "forced" or "automatic" savings plans.
3. Understand the differences between retirement and non-retirement investment accounts.
4. Understand the need for both retirement and non-retirement investment accounts.
5. Understand the tax-deferred benefits associated with retirement account investments.
6. Be able to value the impact of 401K retirement accounts to their overall financial health.
7. Understand the difference between investing in individual stocks and investing in mutual funds.
8. Understand the importance of investment diversification versus get-rich-quick ideas.
9. Be able to systematically choose mutual funds for diversified investments using a disciplined approach.
10. Understand the basic requirements for purchasing a house and how to borrow to finance that purchase.
11. Be able to determine whether they should rent or own their house, car, etc.
12. Understand that financial needs change as their career and family situations change.
13. Realize that they can become wealthy in the future by following tried and true methods.

FIN 455: Corporate Finance, 4 credits

This course will emphasize case/discussion methods to develop an in depth expansion on the basic concepts presented in FIN 301. This course extends the financial analysis of a business to valuing complex capital budgeting and corporate strategies. This course addresses such issues as building the financial component of a business plan and using financial management techniques to find corporate problems/opportunities and fixing/pursuing them. Options for various capital structures and the financing thereof are pursued in depth.
Prerequisite: FIN 301or FIN 321, ECN 221 and ECN 222

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Apply advanced financial management concepts and techniques to business issues.
2. Be able to critique a firm’s capital structure and develop alternative structures.
3. Be proficient in constructing pro-forma financial statements for a variety of business plans and projects.
4. Be able to value the impact of capital projects, mergers, acquisitions, and divestitures.
5. Apply financial management techniques to evaluate international business opportunities.
6. Apply financial management concepts and techniques to various business issues.
7. Have an in depth understanding of the variety of corporate valuation techniques and be able to use them.
8. Be proficient in the use of spreadsheet programs for financial analysis and modeling.
9. Fully understand the pros and cons of various financing techniques in a corporate setting.
10. Understand the concepts and techniques to make corporate buy/lease decisions.
11. Understand what it takes to successfully present the financial component of a business project to higher management.

FIN 485: Cases In Enterprise Valuation, 4 credits

This is a capstone finance course, which builds on the financial concepts learned in previous courses, and presents an integrated approach to enterprise valuation. This is a case discussion and application course which covers various enterprise valuation approaches and the application of these valuation methodologies in the contemporary business environment.
Prerequisite: FIN 455

Goals and Objectives
By the end of this course, Northwood wants students to:

1. Understand and be able to perform asset, earnings, and cash flow valuations.
2. Be able to develop financial models that forecast future value alternatives.
3. Be able to prepare a detailed and realistic sensitivity analysis of cash flow valuation models including terminal value, changes in operating margins, and capital costs.
4. Be able to perform enterprise valuations in the international business environment.
5. Understand the more exotic valuation environments including venture capital and private equity valuation.