2015-2016 Rotman Fact Sheet

SHEETS

MBAFACT

2015/2016

Academic Areas

The term Area refers to the academic divisions within the Rotman School of Management. There are 7 academic areas as follows;

Accounting

Business Economics

Finance

Marketing

Operations Management & Statistics

Organizational Behaviour/Human Resource Management

Strategic Management

Courses in Integrative Thinking are offered by the Desautels Centre for Integrative Thinking.

Students taking four or more electives in a given functional area should be well positioned to declare this a

specialization to the external community. Note that courses marked with an asterisk (*) are experimental

courses. Not all courses are offered each year.

Fact Sheets

The following Fact Sheets have been prepared by individual faculty based on their tentative plans for their

courses next year. Faculty may of course, change their plans as they get closer to the course offering, but

students can rely reasonably well on these descriptions. Some courses may not be offered if, a) there is

insufficient demand for them, or b) there are changes in faculty assignments to courses. Detailed course

outlines are available through R-World at My Program/Elective Courses Info & Resources.

Accounting

Business Economics

Desautels Centre for Integrative Thinking

Finance

Marketing

Operations Management & Statistics

Organizational Behaviour / Human Resources Management

Strategic Management

Courses from other U of T Faculties

Accounting

Area Coordinator: Wally Smieliauskas (416.978-1454 [email protected])

RSM2203H Current Issues in Financial Reporting & Disclosure

RSM2204H Taxation and Decision Making

RSM2209H Financial Statement Analysis

RSM2210H Financial Distress & Insolvency

RSM2211H Business Law

RSM2212H Business Analysis and Valuation

RSM 2203

Current Issues in Financial Reporting and Disclosure

Ole-Kristian Hope

[email protected]

TARGET AUDIENCE

All MBA students would benefit from taking this course. In particular, all students majoring in equity research,

corporate finance, strategy, management consulting, investment banking, or company management should

consider taking this highly integrative course. The course is further a requirement for the accounting major.

COURSE MISSION

Financial reporting is used to inform investors and potential investors but also produces numbers that are used in

contracting between shareholders, managers, creditors and others. Regulators use financial reports to make

assessments of competitive conditions and financial strength. At various times, management makes financial

reporting and/or transaction design decisions to obtain some objective with these various user groups. With this in

mind, this second year course in financial reporting and analysis has two main objectives:

To expand the participants ability to analyze and interpret financial statements and notes and develop an understanding and appreciation of the various incentives and pressures impacting on financial reporting

decisions, and

To examine advanced financial reporting topics and how the application of generally accepted

accounting principles in these areas affect reported earnings and financial position.

Throughout the course, the emphasis will be on examining the topics from the perspectives of external users of

information, rather than preparers. The classes will consist of case discussions, lectures, group presentations, a term

project on quality of earnings, and guest presentation(s). We will integrate material from accounting, finance,

strategy, and management in all our discussions.

Although not a focus of this course, most of the material we cover is highly relevant for the CFA program. In fact,

most CFA candidates find financial reporting to be the most challenging part of the exam.

REQUIRED RESOURCES

Financial Reporting and Analysis (sixth edition 2014). Revsine, Collins, Johnson, and Mittelstaedt. McGraw Hill.

Handouts. Other material posted to portal.

COURSE FORMAT

12 regular sessions in the Fall Session

EVALUATION AND GRADE DISTRIBUTION

Component Due Date Weight

Class participation NA 20%

Group case presentation NA 20%

Term project NA 20%

Final exam NA 40%

RSM 2204

Taxation and Decision Making

Alex Edwards

[email protected]

TARGET AUDIENCE

Students aspiring to be decision-makers in the Business World should take this course. Virtually all business

transactions involve an income tax component and transactions can often be structured to achieve a more

favourable tax treatment, while still achieving the overall objectives of the transaction. In order to understand and

compare these transactions, one has to have a general understanding of the tax rules.

COURSE MISSION

This course will develop a students ability to identify, understand, and evaluate tax-planning opportunities and will provide an overview of the income tax system and how it impacts business and investment decisions. The material

will focus on tax planning concepts and the effect of taxes on business decisions, rather than detailed tax rules and

legal research. We begin by developing a conceptual framework for evaluating how tax rules affect financial

decisions. The framework is then applied to various types of financial decisions, including savings vehicles,

compensation planning, international tax issues, financial statement analysis, capital structure, and mergers,

acquisitions, and divestitures.

COURSE SCOPE

The objectives of the course are achieved through a combination of lectures, selected current readings and the

application of the concepts to problems and examples. After taking this course students are expected to be able

to identify the key income tax issues associated with business and investment activities, have a conceptual

understanding of the income tax implications of the issues identified, and analyze alternatives on an after-tax basis.

COURSE RESOURCES

Buckwold and Kitunen, Canadian Income Taxation: Planning and Decision Making, 2015-2016 edition, McGraw-Hill

Ryerson.

Current Readings in Taxation. These readings will be posted on the portal.

COURSE FORMAT

13 sessions, including term test and final exam



Class participation Ongoing 20%

Group Presentation One group weekly 15%

Group assignment Class 10 25%

Final Exam Exam period 40%

RSM2209

Financial Statement Analysis

Ramy Elitzur

[email protected]

TARGET AUDIENCE

Basically, all MBA students could, and should, take the course. In particular, students interested in careers in

consulting, corporate finance, equity research, investment banking, and anybody who wants to run a corporation.

COURSE MISSION

The objective of this course is to develop a set of tools for in-depth financial statements analysis and valuation. This

course emphasizes the theme of the Accounting Art of War (paraphrasing Sun Tzu) and extends it. The class emphasizes analysis rather than mechanical work.

In order to analyze financial statements and the reporting strategy of companies we need to understand the

underlying motivation of management to shade their financial statements in the way it best serves their overall

strategy. The course builds upon the foundation established in the first year course in Financial Accounting, and

thus assumes a basic familiarity with financial statement preparation using accrual accounting. The course

emphasizes an integrative approach and, as such, has strong links with economics, marketing, finance and

strategy. Consistent with this goal we use a textbook that applies a strategic framework to analyze companies.

Predicting the past, as opposed to predicting the future, is not a useful goal, Consequently, beyond case analyses

(predicting the past) the course has in it a project to analyze real companies in real time applying all of the tools

taught up to that point in the course (predicting the future).

The course has in it three modules:

Global and strategic analysis of profitability and risk

The Accounting Art of War

Forecasting financial statements, valuation and reverse engineering of stock prices

Each of these modules has in it a lecture part, a case study to test our knowledge and the analysis of real

companies in real time.

REQUIRED RESOURCES

JAMES M. WAHLEN; STEPHEN P. BAGINSKI; MARK BRADSHAW, Financial Reporting, Financial Statement Analysis, and Valuation - A Strategic Perspective, 8th edition, South-Western Publishing, 2014

COURSE FORMAT

Weekly interactive lectures, case studies and analyses of real companies in real time.



Group case submissions (1 case) NA 5%

Group financial statement analysis

project (in two instalments)

NA 35%

Participation 10%

Final Exam NA 50%

RSM 2210

Financial Distress and Insolvency

Donna.L.Losell

[email protected]

TARGET AUDIENCE

Students who wish to know what alternative courses of action are open to them in cases of financial instability and

corporate insolvency - whether they are managers, directors, creditors or turnaround specialists.

COURSE MISSION

This course examines the process of corporate bankruptcy in Canada including exposure to the language of

insolvency, identification of key players in insolvency, identification of the advantages of selecting certain

insolvency regimes over others, corporate governance issues in distressed firms, exploration of instability prediction

models and turnaround strategies for firms in financial difficulties as well as additional topics of interest to managers.

COURSE SCOPE

Financial distress is part of the normal business environment with thousands of businesses going bankrupt every year

in Canada alone. Since bankruptcy is a significant presence in the business environment, the objective of this

course is to introduce students to the theoretical concepts and practical realities of financial instability and

insolvency including the language and key players, the legal and management processes needed to ensure not

only that there is as high a return to creditors and equity holders as possible in the circumstances but that the

regulatory requirements have been fulfilled. Students are also introduced to short term metrics and longer term

models used to predict bankruptcy as well as turnaround strategies available to troubled companies. The intention

of this course is to show students that they often have options in instability and insolvency situations whether they

are managers, directors, creditors or equity holders. All second year MBA students are welcome.

REQUIRED RESOURCES

Required Readings:

(i) Lecture notes

(ii) Class handouts

Optional Readings:

(i) Course materials package

(ii) Corporate Bankruptcy: Tools, Strategies , and Alternatives, Grant W. Newton c.2003, John Wily & Sons,

New Jersey

(iii) Corporate Financial Distress and Bankruptcy, Altman and Hotchkiss C.2006

(iv) Distressed Debt Analysis, S. Moyer c.2005

COURSE FORMAT

Regular weekly sessions



Individual assignments weeks 4,5,6,7 40%

Group case presentation and

write up

Weeks 10,11 and/or 12 35%

Take Home Exam To be distributed online in last week of

class

25%

RSM 2211

Business Law

Richard Powers

[email protected]

TARGET AUDIENCE

Students interested in understanding how the legal environment interacts with the business environment. Students

interested in studying current cases that illustrate the dynamic interaction of business and law in todays business environment.

COURSE MISSION

This course is intended to focus participants attention on those areas of law that typically effect a businesss operations. In addition, we will examine those areas of law that reflect on the role of directors and officers. Recent

case law provides numerous examples that illustrate the conflicting roles managers often find themselves in.

COURSE SCOPE

Businesses operate within a complex environment of legal issues. Management must be able to not only recognize

these issues, but also have an understanding of how to resolve them effectively and efficiently. This requires an

appreciation of the Canadian legal system and the way that legal experts can offer assistance. The material will

be examined through cases that reflect the legal principles being discussed during the class sessions. Participants

will be expected to do some further legal research to complete assignments.

REQUIRED RESOURCES

Smyth, J.E., Soberman, D.A. and Easson, A.J., McGill, S.A. The Law and Business Administration in Canada, 13th

Edition (2013). Toronto: Pearson Canada.

Supplementary cases will be provided in class.

COURSE FORMAT

13 regular sessions consisting of readings from the required textbook and other handouts provided in class. Guest

speakers will be involved in several of the lectures.



Class Participation Ongoing 15%

Midterm exam Week 6 25%

Group case assignment TBA 20%

Final Exam TBA 40%

RSM 2212

Business Analysis and Valuation

Partha Mohanram

[email protected]

TARGET AUDIENCE

Anyone pursuing a career where one needs to analyze financial statements intelligently. This obviously includes those interested in finance related professions such as Investment Banking, Research and Investment Management.

Students interested in consulting and marketing also find this course useful because of its approach that focuses on

business analysis with tie-ins to corporate strategy.

COURSE MISSION

This course will help you value businesses using financial statements. We will discuss how accounting regulations and

managerial discretion influence presented financial statements. You will understand how to interpret financial

statements, analyze cash flows, make judgments about earnings quality and uncover hidden assets and liabilities.

You will also be exposed to research from accounting and finance that focuses on how financial statement

analysis can be used in devising trading rules. Finally, we will use financial statement analysis prospectively to

forecast and value firms using cash flow based and accounting based methods.

COURSE SCOPE

The course will consist of the following five modules. In the first module (strategic and industry analysis) you will learn

why the critical first step is to understand industry structure and a companys strategic choices. The second module (accounting analysis) will provide you with a framework to understand and evaluate a firms accounting and disclosure choices and learn how to adjust financial statements to ensure better comparability. The third module

(financial analysis) will present a comprehensive framework for ratio analysis where a firms operations are separated from its financing to better understand the true drivers of profitability and risk. The fourth module

(prospective analysis) will expose you to techniques of integrated forecasting, where you will apply the insights from

the earlier modules and apply them to truly understand what the future holds for the firm being analyzed. You will

then use these forecasts to value firms using a variety of techniques including multiples and abnormal earnings

based valuation methods. In the fifth module, you will apply the business valuation techniques in a variety of

settings including credit analysis, IPO valuation and M&A.

REQUIRED RESOURCES

AVAILABLE on R-WORLD: Presentations for class, Excel Spreadsheets, Links to Articles from Business Press, Additional

readings. There will be no additional course packet as all material will be made available online.

REQUIRED BOOK:

Krishna G. Palepu, Paul M. Healy and Eric Peek, Business Analysis and Valuation using Financial Statements: IFRS Edition. 3rd Edition. The book will be available from the U of T bookstore. Please make sure you buy the IFRS version with cases. The US version will

have different cases, while the version without cases will be useless as we rely on the

text cases. The book you buy should look like this.



5 Individual HW Due In Class 25%

Class Participation NA 15%

Group Project Due in 4 instalments 30%

Final Exam NA 30%

COURSE SESSION OUTLINE

I plan to break up each session into two parts. After the first class, any material that needs to be discussed (in

lecture format) will be covered in the second part. The case relevant to that topic will be covered in the first session

of the next class, as the outline will indicate. Questions for the case will be either on R-World or at the end of the

case itself.

All presentations will be uploaded onto R-World at least 3 days prior to each class. In addition, all supplementary

files will also be available on R-World (excel spreadsheets etc).

The 4 highlighted cases will also serve as the 4 graded HW submissions. All other cases are not required to be

handed it, but it is expected that you are prepared and ready to participate

Session Date Topic Case to be discussed Item Location

1-A Introduction

1-B Strategic Analysis Identify the firms exercise R-world

2-A Strategic Analysis Case HP R-World

2-B Accounting Analysis

3-A Accounting Analysis Case Sunbeam (HW 1) R-world

3-B Accounting Adjustments

4-A Accounting Adjustments

4-B Exercises Chapter 4: Q2,10,13,P 4 Book pg 165-171

5-A Accounting Adjustments

Case

Marks and Spencer (HW 2) Book pg 173

5-B Financial Analysis

6-A Financial Analysis Case Best Buy R-World

6-B Forecasting

7-A Forecasting Case CGI (HW 3) R-World

7-B Valuation Theory

8-A Valuation Theory Case Valuation Ratios in Airlines Book pg 638

8-B Valuation Implementation

9-A Valuation Case CGI R-World

9-B M&A

10-A M&A Case PPR-Puma (HW 4) Book pg 466

10-B Advanced Valuation

11-A Implied Cost of Capital ICC exercise R-World

11-B Credit Analysis

12-A Credit Analysis Case Blackberry (HW 5) R-World

12-B IPO Valuation

13-A IPO Valuation Case Air Berlin IPO Book pg 548

13-B Wrap Up

Group Project

Form groups of 5 (4 is ok). Each group should pick a pair of close competitors in the same industry (or closely related

industries). Ideally, the firms should be comparable in size, be among the leaders in their industry. They should also

ideally be primarily operating and listed in the same country, and should release financials under the same GAAP

(US, IFRS). Examples of such pairs in the US context include Coke and Pepsi, Home Depot and Lowes and Walmart

and Target. Examples in Canada would include such pairs such as Air Canada and Westjet, Suncor and Imperial

Oil, Rogers and Bell, Barrick and Goldcorp. Try to avoid regulated industries (e.g. utilities) and financial services firms,

as the accounting issues can be very different from what we cover in class.

Upon selecting your firms, obtain the most recent financial statements. You could use the web as most firms have a

lot of information usually under investor relations on their web sites, or the annual reports are available on EDGAR

(www.sec.gov) or SEDAR (www.sedar.com). IR websites may have the statements in useful formats such as excel.

Any other public information available on the firms can also be used. The reference librarians in the library may be

able to direct you to sources of information on industries and particular firms. In addition, make use of the internet

and if relevant,other databases such as SDC and Lexis/Nexis.

Main Objective:

Your group should take the role of investment advisor to a group of investors who are looking at a given sector but

unsure of which firm to invest in. Your ultimate objective is to advise whether they should buy/sell/short the stock of

either company. Your recommendation can be a simple buy/sell/hold on each company, as well as more specific

strategies (buy stock X, short stock Y). The different steps in your analysis should include the following.

1. Analyze the industry in which the firms operates in. Do a 5-forces analysis for instance or use any other

framework you feel comfortable with.

2. Analyze the strategy of each of the firms and compare it with each other and other firms in that industry.

3. Do an Accounting Analysis. Analyze the firms accounting choices and compare with each other. Look for red flags. Also, analyze substantive accounting issues such as leases, pensions, income taxes etc looking for accounting related problems. Make adjustments as needed for better comparability

4. Do a Risk and Profitability analysis of the firm using past data. Carry out a panel analysis where you compare

the two firms to each other over a reasonable period of time (3-5 years)

Analyze profitability with an ROE decomposition, into ROA and spread, as well as ROA breakdown into

margins, turnover etc.

Analyze sustainable growth

Analyze liquidity, solvency and coverage.

5. Make assessments about what the future income statements and balance sheets will look like (forecasting).

You can use the condensed approach used in class.

6. Value the firms using the Abnormal Earnings Valuation. Also, value the firm using one other technique (DCF,

Multiples any other method you want to use)

7. Compare the valuation with actual stock price and try to provide plausible reasons for why the firms actual stock price may be different from what you valued it at. Use this to make your recommendation on both firms.

Please remember that while this is an integrative course, greater weight will be placed on the accounting aspects. Use the industry and strategic analysis as a way to set the stage and dont focus too much attention on them. Similarly, greater weight will be placed on abnormal earnings based valuation than other methods.

Business Economics

Area Coordinator: Matt Mitchell (416.946.3149 [email protected])

RSM2115H Creative Regional Strategies* (not offered in 2015-2016)

RSM2116H Sports Analytics and Economics*

RSM2120H Health Policy and Health Care Markets

RSM2122H Business and the Regulatory Environment (not offered in 2015-2016)

RSM2123H International Business in the World Economy

RSM2125H Game Theory & Applications for Management

RSM2126H Real Estate Development

RSM2127H Economic Environment of International Business

RSM2128H Real Estate Economics

RSM2129H Forecasting Models & Econometric Methods

RSM2130H Real Estate Investment

RSM2131H Economics of Innovation and Intellectual Property

RSM2132H Prosperity and Competitiveness

*Experimental Course

RSM 2116

Sports Analytics and Economics

Matt Mitchell

[email protected]

TARGET AUDIENCE

Students interested in sports management, data analysis especially of personnel management, and economics.

COURSE MISSION

This course is intended to apply concepts of analytic management and model based data analysis to the sports

world. An emphasis of model building and application of economics is intended to deepen the students ability to apply these skills in other areas as well.

COURSE SCOPE

We will discuss the analysis of both data and models pertaining to the business management of sports enterprises,

as well as the role that such analytic training can have in making on the field decisions. We will do so by addressing papers at the research frontier, since those papers are an opportunity to learn about the latest thinking.

The papers will both be interested in sports intrinsically, and interested in sports as a way to assess other theories that

are a part of business education.

REQUIRED RESOURCES

Readings from RWorld

COURSE FORMAT

13 weekly sessions. The course will include class discussions of recent research in sports and sports analytics,

presentations by students, and guest speakers. Students will, in addition to regular class participation, complete a

group report on some statistical analysis they want to evaluate, and will conduct an independent data project to

explore a topic of interest. Both will be presented to the class.




Group Report Weeks 5-10 40%

Data Project Finals Week 40%

RSM 2120

Health Policy and Health Care Markets

Mark Stabile

[email protected]

TARGET AUDIENCE

This course is aimed at students interested in understanding the growing role of the health and health care sectors

in the economy. It will be useful for students planning a career in the health care sector, or with innovative

organizations that interact with the health care sector. It will also provide an understanding of the role of

government policy in health care, and how these policies affect the relationship between health care costs and

business competitiveness.

This course is open to all 2nd year Rotman students and is part of the Rotman School of Managements major in Health Sector Management.

The course will be taught in an intensive format in January 2016.

COURSE MISSION

The course will help students understand the complex interactions between health care delivery, insurance

markets, governments, business organizations, and then health of populations. It will help prepare students to take

leadership roles in the health care sector, broadly defined, with consultant organizations, and organizations that

interact with government.

COURSE SCOPE

The course examines key issues in health care policy and markets, both in Canada and internationally. Topics

include the market for medical care, the market for health insurance, the relationship between health care and

the firm, physician payment, hospital delivery and competition, and the pharmaceutical sector. The course will

examine the role of government in the financing and delivery of health care, and how government decisions

affect firm strategy and behaviour. It will also provide context and analysis on health care cost growth and

containment strategies.

REQUIRED RESOURCES

All readings will be available on-line or in the course packet. No textbook is required.



Participation Ongoing 20%

In Class Test Class 8 40%

Group Presentations Class 9 and 10 40%

RSM 2123

International Business in the World Economy

Wendy Dobson

[email protected]

TARGET AUDIENCE

This is a course that will interest students who want more depth and detail on business environmentsboth global and those in key countries. Students who left the first year course in Global Environment of Business wanting more

detail will obtain both analytical frameworks and key details of host country environments required in investment,

outsourcing or exporting decisions in the European Union and ten other major economies around the globe.

Canada is used as an analytical example in the initial class.

COURSE MISSION

The purpose of this course is to bring together what student need to know and understand about the international

economic environment and institutions. The course provides knowledge about ten major economies that host

international businesses, perspectives on what businesses are doing in those economies around the world, and why

and how they are doing it.

By the end of the course, you will be able to address such questions as: How do I assess and predict major

economic trends in these economic areas? How do I find out about a national economic and business

environment in order to trade, invest or do other aspects of business there? What do I need to know about key risks

associated with exchange rate regimes, financial crises, legal and regulatory environments, problems of corruption

and expropriation, and sources of financing? What do I need to know about international institutions and policy

regimes, financial crises, legal and regulatory environments, problems of corruption and expropriation, and sources

of financing?

COURSE SCOPE

A defining feature of the world economy in the early 21st century is the emergence of large dynamic economies

taking their places alongside the traditional players in Europe, the United States and Japan as major trading

partners and as locations to invest and carry on international business. Much attention is paid to this phenomenon

in outsourcing and global value chains. Governments influence the domestic economic environments and

external economic relationships by facilitating cross-border flows of goods, services, technology, capital and

labour. The decisions of multinationals and local enterprises, to create global value chains for example, influence,

and are influenced by, the locations of their technology, financing, production and marketing activities around the

world.

Key country analysis and integration frameworks are developed and applied through lectures and debates during

the course. Key themes include catchup by emerging market economies, the changing roles of the state and markets in key countries, and hot topics like worries about falling into the middle income trap.

REQUIRED RESOURCES

Electronic notes: the Country Analysis Framework; Types of Economic Integration

Selected Readings: A Note on the Potash Case in Canada

The new world disorder

Canada: Economic Update

Asian Development Bank, 2008, Integrating Production; Ch. 3 in Emerging Asian Regionalism China 2030

Chinese SOEs and Canadian FDI

India: Comparing India and South Korea

The rise of the rest of India

PM Modis challenges Abenomics analyzed and described

IMF report on Japan

Dobson, Wendy, 2010, Differentiating Canada

Council on Foreign Relations: North America: Time for a New Focus

Petri and Plummer, Trans Pacific Partnership

Morasevik: Europe after the Crisis

Ideas for fixing the EU

IMF: Unbalanced rebalancing

Details of Canada-EU Comprehensive Economics and Trade Agreement

Northern Lights OECD country survey of Sweden

Nordic economies: Secrets of their success

GCC: Arab World

IMF: Economic Prospects

Labour Migration Issues; Women in the GCC

Connecting Brazil to the World

Brazil Debate, Parts , 2

IMF report on Brazil

Africa Overview; Doing it my way; a hopeful continent

Employment in South Africa

Nigeria: Business in Nigeria; Nigerias renewal Business in Nigeria

IMF survey of Nigeria

The Russian Economy: More than just Energy?

OECD and IMF surveys of Russia

Optional Reading

Wendy Dobson, 2014, Chinese SOEs and Canadian FDI Policy, University of Calgary Issues Wendy Dobson, 2013, Partners and Rivals: The Uneasy Future of Chinas Relationship with the United States, Toronto; University of Toronto Press.

Wendy Dobson, 2009, Gravity Shift: How Asias New Economic Powerhouses will Shape the 21st Century, Toronto; University of Toronto Press.

COURSE FORMAT

12 regular sessions




Class Presentation of Assigned

Readings

Ongoing 10%

Submit topic for approval

Submission of group projects

Topic selection week 6 Project submission week 12

25%

Final Exam (Take home) Week 13 45%

RSM 2125

Game Theory and Applications for Management

Byung Soo Lee

[email protected]

TARGET AUDIENCE

The audience for this course is quite general but those interested in general management or consulting may find

this course of particular value.

COURSE MISSION

The aim of this course is to equip all enrolled students with the ability to model decision problems of all

kinds (e.g., business, political, and personal relationships) as games and reason through them in intellectually

disciplined manner befitting a management scientist. We want to become internally disciplined about that which we know, that which we do not know, and that which we assume about a strategic interaction between interested

parties. In particular, we want to become adept at putting ourselves in the shoes of others in ways that are relevant

to our own decision making. Toward that end, we will explore both the mathematical tools and intellectual

philosophy of game theory.

COURSE SCOPE

The first third of the course is devoted to models of probability and decision making under uncertainty. The

intellectual history of probability from the 17th century to the present will be quickly covered in broad strokes. The

formal frameworks for applying probability theory to decision problems will be developed and motivated. In the

remainder of the course, we will learn how these simpler frameworks, which are relevant to individual decision

making, can used to better understand strategic interactions between multiple interested parties in game theoretic

models. Several important broad categories of strategic interactions will be covered (e.g., commitment,

asymmetric information, etc.). We will also devote some time to applying these ideas in real time to situations

recently covered in the news.

REQUIRED RESOURCES

Recommended book: Games and Information: An Introduction to Game Theory by Eric Rasmusen.

COURSE FORMAT

13 weekly sessions


The evaluation will be based on weekly assignments, a group case, and participation. There is no exam in this

course.

RSM 2126

Real Estate Development

Mitch Goldhar

[email protected]

THIS FACT SHEET IS TENTATIVE

TARGET AUDIENCE

Students interested in learning about the real estate industry and real estate development, specifically through

class discussion and guest speakers. The focus is on the real world of development and planning rather than

theory. Classes will be a combination of both lectures and discussion and will be supplemented by guest speakers.

Students will be expected to engage in the discussion and debate of the issues raised.

COURSE MISSION

The purpose of this course is to provide students with a fundamental background and basic skill set to understand

the real estate development business and its interrelationships with urban planning. It will provide students with an

introduction to the major disciplines and processes related to development, which can provide a basis for the

pursuit of a career in the development field or simply an understanding of the mindset of the developer. The course

attempts to provide some understanding of the complexity surrounding real estate development and will introduce

a level of quantitative and qualitative thinking sufficient to deal with myriad of decisions that confront the real

estate developer. This course gives students the opportunity to experience, first hand, the world of real estate

development through a final group project in which students will be required to apply their acquired knowledge

and skills to identify, investigate, evaluate, and present a real-life real estate development project.

Students are also expected to contribute to class debate and are encouraged to ask questions at any time. The

objective of the course is to enable students to think critically about real estate development. This is not so much a

course in facts as it is a course in thinking, learning and adapting to the forces shaping the real estate development

industry.

COURSE SCOPE

Real estate development is one of the few business fields where financial, legal, social, environmental and political

considerations are so intricately weaved. Knowledge of the interrelationships of these elements and the ability to

understand the ensuing issues are essential to all of those who are involved either directly or indirectly in the

development industry. All businesses and/or activities require real estate, and it is through real estate development

that one can have ultimate control over the creation of value in real estate.

In finding the path to profit, a real estate developer has to navigate through many obstacles and deal with forces,

which he or she must anticipate. These forces can be local, provincial, national, and global in nature, ranging from

the dynamic of the economy to changes in family structure, consumer spending patterns, migration trends and

emerging technologies. The interaction of these forces, over time, makes real estate development an exciting

endeavor in which risks are high and rewards, at times, substantial. It is a field strewn with challenges, risks and

pitfalls that have toppled the largest and seemingly most stable organizations in the world. Yet, the ownership of

real estate has not lost its allure and it is from real estate that many (non-real estate) companies survive.

Real estate development can be considered the bedrock of the real estate industry. To understand real estate development is to understand all aspects of the real estate industryinvesting, financing, growth trends, market cycles, etc. This course provides an overview of the real estate industry, the development process, and the laws

regulating it through the planning process. It covers the financial basis for development projects, the participants,

the market search procedures and the financing of development. It also touches on the interface of the industry

with the public sector.

REQUIRED RESOURCES

A course reader will be provided. There are no required textbooks for the course. Additional required readings will

be assigned and/or handed out in the previous weeks session. These must be read prior to the following weeks lecture, as they will be the source of class discussion. Reference readings will not be discussed in class and are

intended only as an additional reference source on particular topics.

To supplement readings, cases and assignments may require additional resource material to be researched in the

library or through interviews and contacts. The ability to find pertinent information through informal channels is a

fundamental skill required in real estate development.

COURSE FORMAT

13 regular sessions




Assignment 1 Week 5 20%



Development project class presentation

Last class 15%

Development project report

Last class 25%

RSM 2127

Economic Environment of International Business

Don Brean

[email protected]

TARGET AUDIENCE

Students interested in developing a thorough yet practical understanding of the basis of location-specific

advantages and, in particular, how modern industry successfully taps those advantages around the globe. The

course appeals to those intent on careers in international business, strategic management and global positioning.

COURSE MISSION & SCOPE

What economic factors shape a foreign market opportunity or a foreign production opportunity? What specific

corporate characteristics contribute to successful foreign operations? In what way and to what extent do national

and international laws, regulations or institutions such as trade law, competition policy or the level of a countrys financial development shape the commercial opportunities in specific locations? Answers to such questions are focus of RSM 2127.

The course also addresses the role of international economic institutions and arrangements such as the World Trade Organization, the IMF, NAFTA, The EU Economic Directorates, tax treaties, intellectual property protection in making the world a more promising and secure place for international business. In RSM 2127, such issues are

explored, explained and illustrated.

This course establishes managerial perspectives on international trade, cross-border investment and global risk

management. Fundamental principles of international trade and finance comparative advantage, gains from trade, industrial specialization are framed for business decisions in the world economy. Principles of global industrial organization are illustrated in a context of increasing international economic integration. All concepts are

illustrated with real world examples.

Specific topics examined in depth include industry exposure to exchange rate changes (and how to hedge such

exposure), international diffusion of technology, investing in emerging markets (such as China and India), conflict

resolution in international trade (with illustrative examples) and international aspects of competition policy.

REQUIRED RESOURCES

Please insert textbook name and edition, as well as course package information. This is not binding. We will tell

students that the textbook information here is subject to change.

COURSE FORMAT

12 weekly sessions



Mid-term NA 30%

Essay/Presentation NA 35%

Final Examination Exam week 35%

The course involves a blend of lectures, case analysis and, closer to the end of the course, student presentations of

firm- or industry-specific term projects.

RSM 2128

Real Estate Economics

William Strange

[email protected]

TARGET AUDIENCE

Real estate matters in every area of business. Real estate assets are a very important part of corporate balance

sheets. The principle residence is usually the largest item in a households portfolio. In aggregate, real estate has been estimated as comprising roughly 40% of total wealth. For all of these reasons, real estate is a fundamental

area of finance. Real estate and location decisions can determine whether entrepreneurs succeed or fail and

whether mature businesses grow or decline. It is thus no exaggeration to claim that all educated businesspeople

should know something about real estate.

This class is, therefore, designed to be useful across the MBA program. In addition to students who pursue careers in

real estate itself, a background in real estate can be useful to students in banking and asset management. A

background in real estate can also be useful to general managers to the extent that they deal with location

decisions and because firms in other lines of business frequently own or rent significant real estate, and are

therefore accidentally in the real estate business. Real estate is also important to consultants since real estate

decisions are so important for the businesses that make them.

COURSE MISSION AND SCOPE

The course applies economic methods to make students better real estate decision-makers. Topics covered

include the determinants of real estate values, the location decisions of households and firms, land use, urban

growth and agglomeration, industry clusters, cycles, bubbles, real estate finance, real options, and leasing.

REQUIRED RESOURCES

The course will make use of a paperback text (Helsley, Robert W., Urban and Real Estate Economics , Vancouver :

UBC Real Estate Division, 2003) and a course packet. The packet will contain one case and a number of articles.


Class participation All weeks 10%

Case write-up* Week 8 5%

Debate* Week 10 5%

Paper/Presentation* Week 13 30%

Final Examination period 50%

*Denotes group work. Students are allowed to choose their own groups, with each group

having 4-5 members.

The case to be written-up will concern the development of Canary Wharf in London, England. The debate will

concern housing price bubbles. The term paper will be relatively short (15 pp.). It can be on any topic in real

estate, and I interpret this very broadly. Previous papers have dealt with real estate finance, market analysis, real

estate strategy, and entrepreneurship.

RSM 2129

Forecasting Models and Econometric Methods

Peter Dungan

[email protected]

TARGET AUDIENCE

Students interested in understanding and using regression-based forecasting techniques applicable to Finance,

Marketing, Strategy and Business Economics.


The course provides an introduction to forecasting techniques based on time-series methods, single-equation

econometric (regression) equations, multiple-equation econometric models and volatility forecasting (ARCH techniques and their offspring). The forecasting applications considered span demand and price forecasting and

financial variables. The course is hands-on, requiring use of the toolkit of techniques in Econometric Views an econometrics package widely used in the forecasting community. Relatively little time is devoted to non-

econometric forecasting techniques.

REQUIRED RESOURCES

Required: Econometric Views Student Version 7.0, Quantitative Micro Software (Text and program on CD-ROM) (EV)

Recommended: R.S. Pindyck and D.L. Rubinfeld (PR), Econometric Models & Economic Forecasts 4th ed. New York:

McGraw Hill (This or any equivalent econometrics text is recommended; PR and several other

econometric/forecasting texts will be placed on reserve in the Rotman library)

COURSE FORMAT

13 weekly sessions



Mid-Term Test No. 1 Week 7 (in class) 30%

Mid-Term Test No. 2 Week 12 (in class) 30%

Term Paper Due End of term 40%

RSM 2130

Real Estate Investment

Lu Han

[email protected]

TARGET AUDIENCE

Real estate assets account for about one-third of the value of all capital assets in the world. An understanding of

real estate is important no matter what line of business a student plans to be in. This class is, therefore, designed to

be useful across the MBA program.

COURSE MISSION

This course will consider the economic and financial issues that are of fundamental importance in the analysis of

real estate investment. The objective is to combine the analytic framework of financial economics with the real-

world features of real estate markets. The course shall (1) help students understand house price movements; (2)

familiarize students with the key elements of the real estate investment decision process in both residential and

commercial real estate markets; and (3) establish a meaningful framework within which students can identify real

estate opportunities and manage the associated risks.

COURSE SCOPE

This class will provide an overview of real estate valuation, financing and investment, using finance and economics

tools. Topics include real estate investment and development, mortgage and equity financing, real estate

securitization and credit crunch, real estate brokerage, house price dynamics, homeownership decisions and

government policies.

REQUIRED RESOURCES

The course will make use of a textbook and a course packet. The required textbook is Real Estate Finance and

Investments by Peter Linneman. The packet will contain both articles and cases.

COURSE FORMAT

13 weekly sessions

In order to emphasize the interaction of theory and practice, academic lectures are supplemented by a series of

student presentations, case discussions, and guest lectures.



Class Participation All weeks 10%

Case Assignment* Week 4,10 10%

Debate* Week 7 5%

Paper/Presentation* Week 13 25%

Final Examination Period 50%

*Denotes group work. Students are allowed to choose their own groups, with each group having 4-5 members.

RSM 2131

Economics of Innovation and Intellectual Property

Matt Mitchell

[email protected]

TARGET AUDIENCE

Students interested in management of the research process and management of intellectual property, especially

as it relates to government policies such as patents that provide intellectual property protection.

COURSE MISSION

This course should allow students interested in technology and management to get a new perspective on the

problems faced by firms, and understand an important force shaping the dynamic evolution of industries.

COURSE SCOPE

Firms and industries are often shaped by important innovations. We discuss how economic theory can help the

manager to understand the development of innovations and their impact on the firm and the industry as a whole.

Another important feature of innovations is the intellectual property they generate. We describe a variety of ways

in which intellectual property is protected and used by firms, and the economics of these different protections.

REQUIRED RESOURCES

Course packet and information distributed on RWorld.

COURSE FORMAT

13 regular sessions




Group Case Presentation Various 20%

Group Patent Project Last Class 20%

Final Exam TBA 50%

RSM 2132

Prosperity & Competitiveness

Richard Florida

[email protected]

TARGET AUDIENCE

This course will impart this understanding the role of business and public policy in the competiveness and prosperity

of cities. It will do so through theories, data, and case studies, drawn from my more than three decades of my own

research and extensive experience working with companies, nations, and cities. The course integrates academic

theory and real world examples of the forces that shape business competitiveness and community prosperity.

COURSE MISSION

Cities are an increasingly important component of economic life. Half the worlds population lives in cities and metro areas a figure that will only continue to increase. Businesses depend on places for their competitiveness and the prosperity of communities depend on economic success.

COURSE SCOPE

This course is designed to help you understand the role of firms and communities in prosperity and competitiveness.

It has four key objectives:

To help you understand the importance of competitiveness and prosperity for communities as well as

companies.

To help you better understand how and why firms locate where they do and the role of location in corporate

strategy and performance.

To help you understand the various assets that communities provide to people and firms.

At a more personal level, this course will give you the tools you need to help you select the best place for your

career and life.

REQUIRED RESOURCES

Florida, R. (2012) The Rise of the Creative Class Revisited. New York: Basic Books.

COURSE FORMAT

12 weekly sessions




Assignment 1 Ongoing 20%




Desautels Centre for Integrative Thinking

Area Coordinator: Mihnea Moldoveanu (416.978.7700 [email protected])

RSM2913H GettingItDone

RSM2918H Business Intelligence ((offered in 2016 Winter Intensive Term only)

RSM2920H Top Manager's Perspective

RSM2922H The Opposable Mind (not offered in 2015-2016)

RSM2923H Business Problem Solving - An Integrated Approach

(offered in 2015 Summer Intensive Term only)

RSM 2913

GettingItDone

Brendan Calder and Dr. John ODwyer www.GettingItDone.biz

TARGET AUDIENCE

Soon to be MBA graduates who want to effectively implement their strategies when in leadership and

management positions.

This is a course about GettingItDone; It being your vision (and related strategy, operating results, change initiatives, and employee involvement and commitment). This is a doing course and not a memorizing course.

COURSE MISSION

1. Students learn an annual planning and management process that incorporates and links the practices of

strategic choice, organization alignment, managing for results, and continuous improvement. Graduates will be

able to effectively implement their vision and strategies when in leadership and management positions

2. Students get proven tools and methods to achieve organizational results

3. Students get proven tools that will improve their personal effectiveness

COURSE SCOPE

The course delivers proven models and tools that have been continuously refined over 40 years based on the works

of Peter Drucker, Roger Martin and Bill Reddin (see www.gettingitdone.biz).

Classes will include a number of sessions with real leaders who are GettingItDone in real time. The course Faculty

have managed and consulted to many organizations using these tools and methods.

INSTRUCTIONAL METHODS

Sessions include guests who are GettingItDone in real time Individual assignments and team-based management simulation Action Learning Discussions of readings and key take-aways Applications of learnings to your next job situation One-on-one coaching & after hours social events

REQUIRED RESOURCES

- GettingItDone Tool Kit distributed in Session 1 - Peter F. Drucker - The Effective Executive (book distributed at Meet & Greet before course)

- Roger Martin Playing to Win article (PDF distributed prior to course) - Bill Reddin - How to Make Your Management Style More Effective & The Output Oriented Organization (PDFs

distributed prior to Course)

COURSE FORMAT

10 sessions

EVALUATION

Active Class Participation (20%)

Students are expected to be engaged during their class attendance and to make a contribution to the overall

learning experience.

Individual Paper (20%)

Each student to submit a paper answering the following questions:

1. List the key take-aways from each author

2. Compare and contrast the views of these three authors

3. Comment on where these views are relevant today

Rules are: 3 pages maximum and it should be Clear (easily understood), Memorable (worth remembering) and

Compelling (having a powerful & irresistible effect).

Individual Presentation (20%)

Each student to prepare a presentation addressing the following challenge:

Based on your learnings in the GettingItDone course, what are the things that you personally commit to do during

the first six months in your next job?

Team Presentation (40%)

Students will be randomly assigned into Study Teams of 5, in advance of the start of the course.

The team presentation assignment will be:

Based on the methods and tools that you have learned during the GettingItDone course and as applied to your

assigned management simulation:

1. Describe what impact the Team Effectiveness Lab (TEL) activities had on your teams effectiveness (20%). 2. Develop a Performance Agreement (PA) for your management simulation corporation, for the next fiscal year

(20%).

RSM 2918

Business Intelligence

Filippo Passerini

[email protected]

NEW INSTRUCTOR BIO

Dr. Filippo Passerini is a recognized world-class IT strategist, with more than three decades of business-building

experience with Procter & Gamble. He has served for over ten years as Group President of Global Business Services

(GBS) and Chief Information Officer (CIO), leading the most global P&G organization and overseeing over 170

distinct services in 70 countries. He has broad international experience including living and working in Italy, Turkey, the UK, Latin America, Greece and the United States.

Dr. Passerini is globally recognized as an information technology and shared services thought leader and is known

for creating new, progressive business models leveraging digital technology and driving innovation. His strategies,

principles and ideas have been the subject of numerous books, articles and Harvard Business Reviews.


In a world ever more complex and fast-paced, detecting and anticipating the need for business change is

becoming increasingly critical. Speed of decision making is often the key differentiator in the success and failure

of an Enterprise. At the same time the amount of data available to us, both structured and unstructured (Big Data),

is becoming a new force. In order to turn all of that into a competitive advantage as opposed to overwhelming entropy new tools and ways of using data to make decisions and solve problems are necessary.

This course aims at providing the context in which Analytics and Business Intelligence plays a strategic role in the

business, as well as the content to turn data into information, then into knowledge, and finally into insights and

business action predicated on new information. The course illustrates the importance of rapidly moving beyond

what is happening in the business, to invest time on why it is happening, and better understand the options available for how to react. All of that based on case studies, highly interactive sessions, and several business cases. The course also touches several personal skill areas fundamental to succeed in todays business world, as well as the importance of Visualization to bring to life complex analytical models and distill down actionable

insights.

CAREER FOCUS

The course is open to anyone wishing to improve his or her basic knowledge on Business Intelligence and Analytic

and who wants to learn how to turn digital technology into competitive advantage. Students pursuing careers in

general management, investment banking, consulting, financial services and entrepreneurship in big data niches

should find the course of particular interest.

REQUIRED RESOURCES

TBD

COURSE FORMAT

Intensive format offered over 7 days


TBD

RSM 2920

Top Managers Perspective David R. Beatty O.B.E.

[email protected]

Richard Powers

[email protected]

TARGET AUDIENCE

The course should be of interest to future consultants, general managers, investment analysts and entrepreneurs.

The course demands a lot of work outside the boundaries of text books and lectures so it is not for everyone.

COURSE MISSION

The objectives of this course are to make you a better decision maker by:

Making you think logically and teaching you to communicate in a clear, memorable and compelling

way

Developing your understanding of the theory and concepts of strategic management in large complex

business organizations.

Providing you with a set of practical analytical tools to enhance your strategic skills

Building your self-confidence as a decision maker at the most senior managerial level.

COURSE SCOPE

This is a course designed to make you a better strategic decision maker and to integrate all the skills you have

acquired in your career and at RSM.

The course is built on some high level frameworks, such as LogicWorks, that enhance your capacity to reason

logically, to identify effective solutions and to learn continuously from your own experiences.

The course works with practical tools and techniques such as momentum analysis, Porters 5 forces, core competence, the GE/McKinsey 9-box and others. These tools and the exercises designed to make them useful will

assist you in making real world, real time decisions in complex business environments.

The course perspective is that of the CEO of large, global businesses such as Four Seasons, Gildan, CAE or Inmet

Mining as well as a more local business, Loblaws.

Students will be required to develop insights from the provided readings (Annual Reports and analysts reports) and from their own independent investigations. There are no boundaries. Each days newspapers may add further dimensions to the course.

If you are prepared for hard work, aggressive thinking and insightful reflection about yourself this course may well

transform your career trajectory.

REQUIRED RESOURCES

The readings will be drawn from Corporate Annual Reports, Investment Analysts Reports, selected HBR articles on relevant topics.

Students will also be required to develop their own information sources from interviews, literature searches or

company/industry reviews.

EVALUATION


Participation in class (individual) Ongoing 20%

Case presentations in class (group) Various 40%

Final exam (individual) Exam week 40%

Top Managers Perspective Assignments and Expectations

Please note that this course has both graded and ungraded work. You should not sign up for the course if you are

not prepared to commit fully to the ungraded work as well as the graded work. To give you a sense of the

expectations, here is what we did in 2014:

1. Graded Work

Due Date

Contribution in class (individual) 20% ongoing

Mid-term (group) 40% Nov

Final exam (individual) 40% Dec

2. Expected, but Ungraded

Attend coffee with. sessions, usually outside class time at 7:30 AM at the corporate office of the

speaker. It is expected that you show up for all of these 15 sessions.

o Submit a journal entry for each guest speaker within 36 hours

o At the term end summarize your key take-aways from these coffee with sessions

Thoroughly prepare the case and any readings for each week.

Prepare a short presentation every week on the case, using a framework to be provided. Each group gets

to present at least once.

Enrolment in this course is limited and very competitive. If you are not sure you are willing or able to do the

work, please let someone else join the class who is.

RSM 2923

Business Problem Solving An Integrated Approach Mihnea Moldoveanu

[email protected]

TARGET AUDIENCE

This course will be of particular interest to future consultants, investment bankers and general managers.

COURSE SCOPE AND MISSION

This course aims to make you a better framer and solver of any business problem. It will do so by getting you to build

an observer and a controller for your own mind, or to improve the observer and controller that you currently

possess. You will be introduced to a basic language for describing any problem and the mental processes involved

in solving it, and a discipline for using this language. The basic elements of this language form the basic building

blocks of the course, which will highlight the application and use of each element of the language to problem

solving behavior.

The course is open to anyone wishing to improve his or her basic problem solving skill. It will be particularly useful to

those contemplating careers in management consulting, investment banking and entrepreneurship.

REQUIRED RESOURCES

Diaminds, by Mihnea Moldoveanu and Roger Martin (2009)

Readings and Cases as assigned

COURSE FORMAT

May Intensive




Assignment 1 TBC 20%

Problem Framing

(In-class Presentation)

TBC 30%

Take Home Final Exam TBC 40%

Finance

Area Coordinator: Craig Doidge (416.946.8598 [email protected])

RSM2300H Corporate Financing

RSM2301H Financial Management (also offered in 2015 Summer Term)

RSM2302H Security Analysis & Portfolio Management

RSM2303H Risk Modeling & Financial Trading Strategies

RSM2304H Financial Institutions & Capital Markets

RSM2305H International Financial Management

RSM2306H Options & Futures Markets (also offered in 2015 Summer Term)

RSM2307H Advanced Derivatives

RSM2308H Financial Risk Management

RSM2309H Mergers & Acquisitions

RSM2310H Analysis & Management of Fixed Income Securities

RSM2312H Value Investing

RSM2314H Private Equity & Entrepreneurial Finance

RSM2315H The Management of Private Wealth

RSM2316H Introduction to Hedge Funds and Broker Dealers

RSM2317H How Banks Work: Management in a New Regulatory Age*

RSM2319H The Revolution in Finance: Markets, Institutions and Organizations*

RSM2320H The Canadian and American Financial Systems Comparisons and Contrasts*

RSM2321H Islamic Finance in Canada

* Experimental Course

RSM 2300

Corporate Financing

Sergei Davydenko

[email protected]

TARGET AUDIENCE

This is a core course for students interested in a career in finance in a bank or investment bank, in corporate finance or treasury, or as an investment analyst. For students that are not finance majors (such as JD/MBA or MFE

students) the course offers an appreciation for how companies raise capital.


The aim of this course is to help you learn to apply fundamental ideas of financial economics, which you already

know from basic finance courses such as RSM1232, to problems in the area of corporate finance which reflect the

complexities that the real world entails. The course will give you the opportunity to analyze practical financial

situations, on the assumption that you are already familiar with fundamental ideas concerning valuation methods,

risk analysis, CAPM, derivatives, and capital structure. In addition to analyzing specific financial issues, we will

consider how those issues relate to the broader objectives of the firm and the underlying big-picture assumptions used in numerical calculations.

We will use the case method to motivate our discussion of the gap between rigorous finance theory and its

applications to practical problems in corporate finance, and the thought process required to bridge this gap. The

course also places emphasis on presentation and discussion skills. It will be important to explain your positions to

each other and to argue convincingly for your recommendations in your case write-ups and presentations.

REQUIRED RESOURCES

Text 1331/1232 Finance text book. Course Package- consisting of cases and supplementary readings

COURSE FORMAT

12 regular sessions




Group Cases and

Presentations

Throughout the term 40%

Final Exam Exam week 45%

RSM 2301

Financial Management

Wendy Rotenberg

[email protected]

TARGET AUDIENCE

This is a required course for students in the corporate finance/investment banking stream. It can be taken

concurrently or before RSM2300 Corporate Financing or RSM2309 Mergers and Acquisitions. It should also be of

interest to those students who simply wish to have a better understanding of how firms manage their working

capital and make capital budgeting decisions. It is also the designated finance for non-finance specialist course.

COURSE MISSION

The course is designed to deepen the understanding of basic financial management decisions within a non-

financial corporation and focuses on the application of modern financial techniques to operating and investing

decisions. It comprehensively analyzes working capital management and capital budgeting decisions within the

context of the firms business strategy. The course consists of two parts: the management of working capital (including short term financing), and internal long-term asset acquisition (investment a.k.a. capital budgeting and

Capex) decisions.

COURSE SCOPE

The course looks at the management of working capital and the organic acquisition of long-term assets and deals

with the following critical questions:

What is the cash cycle within the firm?

How can the firm forecast its cash requirements?

How can the firm develop its cash budget?

What is the difference between seasonal, cyclical and secular demands for funds?

How can banks structure lending agreements to manage the different funds requirements?

How does securitization affect short term liability management?

What are the advantages of leasing versus borrow/purchase and how should such a hybrid decision be

made?

How are incremental cash flows determined for investing decisions?

How can the firm evaluate replacement, expansion, new product development, international and

strategic investment decisions?

How can real options analysis help make better investment decisions?

REQUIRED RESOURCES

There is no textbook required. The course is based on a package of readings and the textbook required in the first

year finance course.

COURSE FORMAT

12 regular two hour sessions


Component

Due Date Weight

Individual Homework

Assignments

various 30%

2 Group Case Analyses

various 20%

Final Take Home Exam

1 week after end of course 50%

RSM 2302

Security Analysis and Portfolio Management

Maureen Stapleton

[email protected]

TARGET AUDIENCE

Students who are interested in the conceptual framework and real word practice of portfolio management. This

course provides a solid background for those who plan to work in the funds management industry in any capacity,

and for those who have a strong interest in investing. It useful for students who are working towards the CFA

designation which is required of almost anyone who plans a career in analysis, portfolio management or

sales/trading.

COURSE MISSION

This course expands on investment concepts introduced in RSM1231. It focuses on theories and techniques that

underlie the construction and management of optimal investment portfolios, emphasizing the risk-return tradeoffs

that are appropriate for different types of investors.

It explores key elements of the investment management process, including development of objectives and

constraints, implementation and performance measurement. The characteristics of stocks and bonds are

discussed, with an emphasis on valuation metrics and performance drivers. By managing fictitious funds via trading

real securities, students will apply their classroom knowledge and shrewd judgments to real-world investing.

COURSE SCOPE

Taught by a former institutional portfolio manager, this course covers theoretical concepts, some empirical

methodology and their application to real markets and portfolios. Through a combination of lectures, readings and

case discussions, students explore key elements of practical asset allocation, security valuation and style investing.

Students will apply their knowledge by managing portfolios on the Rotman Portfolio Management System (RPM).

REQUIRED RESOURCES

1. Text book: "Investments," by Z. Bodie, A. Kane, A. Marcus, S. Perrakis, and P. Ryan. 8th Canadian edition,

McGraw Hill Ryerson, 2014.

2. Cases and readings to be downloaded from various sources.

COURSE FORMAT

12 regular sessions



Assignments & Cases Ongoing 25%

Investment project End of term 25%

Final exam Exam period 50%

RSM 2303

Risk Modeling and Financial Trading Strategies

Tom McCurdy

[email protected]

TARGET AUDIENCE

Those interested in developing skills to make effective financial decisions for an uncertain future. These skills have

general applicability but may be particularly relevant for risk management, investment strategies, and securities

trading.

COURSE MISSION and GOALS

1. To learn to make effective financial decisions when the future is uncertain by evaluating models & model

uncertainty associated with forecasting risks & potential returns

2. To practice apply those models and skills to various securities and investment objectives using simulation-based

learning-by-doing

COURSE SCOPE

This Lab-based course will integrate theory and practice by using simulation cases and real-time data links to both

a simulated market and to quotes from actual markets. In particular, we use the RIT market simulator to deliver

learning-by-doing cases which, coupled with Excel support applications to apply the relevant theory, will guide

decision making and allow us to derive effective strategies when faced with uncertainty and quantifiable risks. This

training is analogous to using a flight simulator; cases are designed to master one skill at a time progressing to

capstone cases which involve several interacting or cascading risks. More details are available at

http://rit.rotman.utoronto.ca. In addition, RPM exercises will be assigned to apply your strategies to real-time market

quotes. This facilitates learning about important institutional details and reinforces the learning objectives of the RIT

cases. You will be able to install the RPM client and connect to the RPM server from any computer with a web

connection (see http://rpm.rotman.utoronto.ca for details).

REQUIRED RESOURCES

Slides, case briefs, help files for Lab applications and required background readings will be posted on RWorld. These

can be compiled into a course package on request. Additional optional readings will also be posted.

COURSE FORMAT

12 or 13 sessions perhaps including a visiting speaker session

Most classes will be held in the Finance Lab.

TENTATIVE EVALUATION AND GRADE DISTRIBUTION (more details available on the course outline)

Component Due Date Tentative Weight

Two Group Excel Assignments TBA 30%

Simulation Case Performance TBA 18%

Practice Exercises TBA 12%

Tests TBA 40%

RSM 2304

Financial Institutions and Capital Markets

Susan Christoffersen

[email protected]

INSTRUCTOR BIO

Professor Christoffersen was hired to the University of Toronto in 2010 with award-winning experience teaching both

undergraduate and MBA courses in financial institutions and corporate finance. Her research focuses on mutual

funds and more generally on the role of financial institutions in capital markets. In 2005, Professor Christoffersen was

honoured by the Canadian Securities Institute Research Foundation as their three-year term professor. Her research

has been cited in several international newspapers such as the Wall Street Journal, The New York Times, and The

International Herald Tribune.

TARGET AUDIENCE

This course is meant for any students interested in understanding how financial institutions and capital markets

function. The focus is on current issues facing management in the financial service sector. The course would be of

great interest to students contemplating a career in financial services and also those just wanting to gain a general

knowledge of how markets work. The material is accessible and general enough for all business majors as it

provides a solid understanding of financial markets, needed by anyone working in business management.


The course first provides a qualitative description of commercial banks, investment banks, insurance companies,

mutual funds, and central banking. For each institution, the course discusses their basic business practices as well as

the regulations and regulators guiding each institution. From a macroeconomic perspective, we consider how

each of the institutions plays a role in economic activity and growth. We also consider some of the incentive

problems with individuals managing their investments through institutions. These incentive problems provide the

grounds and needs for regulation. Finally, the course considers the role of a central bank and describes how

commercial banks work alongside the central bank to implement monetary policy. Throughout the course,

discussion is raised about current interest rate policies and the implication of high- and low-rate interest rate

environments for numerous institutions. Cases are used throughout the course to provide examples and illustrations

of the challenges facing capital markets and financial institutions.

REQUIRED READINGS

A course package of readings will available as well as cases. The instructor has also developed several course

notes which supplement reading material and are available through R-world.


Component Due Date Tentative Weight

Class participation Ongoing 10%

Quiz #1 Week 4 15%

Quiz #2 Week 8 15%

Cases/assignments Ongoing and Week 10-12 25%

Final exam Exam Period 35%

RSM 2305

International Financial Management

Don Brean

[email protected]

TARGET AUDIENCE

This is a recommended course for students following the corporate finance/investment banking major. More

generally, the course should be useful for students interested in the international aspects of finance.


In frictionless and integrated world markets we would expect that the country an investor resides in or where a firm

is incorporated should not matter. Although the process of globalization has reduced many barriers to international

investment for both firms and portfolio investors, countries and borders continue to have a major impact on many

aspects of finance. For example, the country where an investor resides has a major impact on his or her portfolio

choices and consumption decisions. The country where a firm is incorporated affects its ownership structure, capital

structure, and corporate governance choices. Importantly, when investors and firms cross a border into another

country, it changes the opportunity set, incentives, and risks that they face. For example, investors can lower the risk

of their portfolios by diversifying internationally; firms can raise capital abroad, often on better terms than they

could get at home. With these benefits come additional risks, such as currency risk and political risk that can have a

major impact on firm value. Further, issues such as different accounting standards, tax rules, and institutional

constraints can make crossing borders a challenge for both firms and investors.

The goal of this course is to provide a framework for making financial decisions in an international context.

Therefore, the course extends the principles of investment analysis and financial management to the international

environment. The course covers a broad range of interrelated topics such as:

Currency markets and parity conditions

International investing and portfolio diversification

Understanding and managing exchange rate risk

Raising capital in global markets

Project finance

International capital budgeting and political risk

REQUIRED RESOURCES

1. Cheol S. Eun, Bruce G. Resnick, and Donald J.S. Brean, International Financial Management: Canadian

Perspectives 2nd ed, 2008 (McGraw-Hill).

2. Course package: contains additional readings as well as the case studies that are discussed in class.

3. Optional articles related to material covered in class are posted on the course webpage.

COURSE FORMAT

12 regular 2 hour sessions, split between lectures and case studies


Component Weight

Class participation 10%

3 case studies 40%

Final exam 50%

RSM 2306

Options and Futures Markets

Kevin Wang

[email protected]

TARGET AUDIENCE

Students who expect to work in finance or who have some interest in derivatives markets.

COURSE MISSION

It aims to provide students with an understanding of derivative instruments including their use in trading and risk

management. This is the first of a three-course sequence in risk management and financial engineering. The other

courses in this sequence are Advanced Derivatives (RSM 2307) and Risk Management and Financial Engineering

(RSM2308).

COURSE SCOPE

This course covers forwards, futures, swaps and options. By the end of the course, students will have good

knowledge of how these contracts work, how they are used and how they are priced. They will also gain hands-on

experience through an RPM hedge fund project.

REQUIRED RESOURCES

Options, Futures, and Other Derivatives by John Hull, eighth edition, and Solutions Manual for this book

COURSE FORMAT

12 or 13 regular sessions


Component Type Due Date Weight

Assignment 1 Group Week 4 5%

Assignment 2 Individual Week 8 10%

Assignment 3 Group Week 12 5%

Hedge Fund Project Group Last Week 30%

Final Exam Individual Exam Week 50%

RSM 2307

Advanced Derivatives

Alan White

[email protected]

TARGET AUDIENCE

This course covers more advanced material than RSM 2306. It is intended for students who have a quantitative

background.

COURSE MISSION

Objective is to enhance students knowledge of the way in which derivatives can be analyzed.

COURSE SCOPE

The course starts with Black-Scholes analysis. This leads to a variety of approaches commonly used to value

derivatives. This technology is then applied to a variety of exotic contracts. The second half of the course focuses

on the types of models used in the swap market.

REQUIRED RESOURCES

Options, Futures, and Other Derivatives by John Hull, 9th edition, and Solutions Manual for this book

COURSE FORMAT

13 regular sessions



2 assignments uniformly distributed through the course 50%


RSM 2308

Financial Risk Management

John Hull

[email protected]

TARGET AUDIENCE

Students expecting to work in finance, particularly those who would like to work for a bank or other large financial

institution

COURSE MISSION

To explain important issues concerned with the way banks throughout the world manage risks. Bank regulations

including Basel III and Dodd-Frank will be covered. Many of the topics are applicable to non-bank institutions and

to non-financial corporations.

COURSE SCOPE

This course deals with the ways in which risks are quantified and managed by financial institutions. Among the

topics covered are types of financial institutions, the regulation of banks and other financial institutions, market risk,

credit risk, operational risk, liquidity risk, model risk, and economic capital.

REQUIRED RESOURCES

Risk Management and Financial Institutions by John Hull, third edition, Wiley.

COURSE FORMAT

12 regular sessions






RSM 2309

Mergers and Acquisitions

Andrey Golubov

[email protected]

TARGET AUDIENCE

This is a recommended course for students following the corporate finance/investment banking major. More

generally, the course should be useful to any student interested in investment banking, private equity, funds

management, consulting, corporate development, entrepreneurship, accounting and control, business journalism,

general management, and advising senior mana

2015-2016 Rotman Fact Sheet

Documents

Transcript of 2015-2016 Rotman Fact Sheet