FINANCE AND BUSINESS ECONOMICS

Senior Concentration Elective Course Guide 2009/2010

November 9, 2009

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Finance and Business Economics Department Undergraduate Concentrations 2009-2010 The Marshall School's top-ranked Finance and Business Economics (FBE) Department consists of faculty members who are leading authorities in microeconomics, macroeconomics, corporate finance, investments, financial institutions, financial markets, and real estate finance. These academic disciplines are important for business planning and consulting, evaluation of capital investments and corporate strategies, and securities investment analysis, advising, and trading. Professors from FBE, and course instructors from the financial industry offer a range of upper-level elective courses preparing Marshall undergraduates for a variety of careers. While all FBE concentrations have broad relevance for business and consulting, the individual concentrations described below are designed to prepare students with different career interests and goals. FBE offers the following 8 concentrations: Business Economics: 16 units Business economics is ideal training for those of you seeking careers in management and litigative consulting, government or industry research, and is excellent preparation for professional training in law or advanced business degrees. Corporate Finance: 16 units The corporate finance concentration is directed at those of you who intend to work for major business organizations in a range of areas, from project analysis, financial planning and treasury functions, to strategic planning. Financial Analysis & Valuation: 16 units The financial analysis and valuation concentration is directed at those of you who intend to work in the global financial marketplace, including money management firms, commercial and investment banks. This concentration is offered in coordination with the Leventhal School of Accounting, and the Center for Investment Studies. General Financial Management: 16 units The general financial management concentration offers you the widest range of course offerings and is the best option for students who wish to explore a wide range of financial activities prior to making specific career choices. Investments & Financial Markets: 16 units Investments and financial markets is a concentration for those of you who have interests focused on investments and asset management and trading financial instruments. Students pursuing this option are ideally prepared for financial advising, trading, and investment banking careers. Real Estate Finance: 16 units The study of real estate involves the application of business decision-making tools in the real estate industry. Emphasis is placed on economics and financial analysis of issues in real estate markets including those related to investment and development. Securitizations of real estate debt and equity as well as entity level decision-making are key parts of the curriculum. Real Estate & Construction Management: 21-22 units This concentration is designed for students interested in construction and project management aspects of the real estate development process. Coursework includes upper division courses in construction engineering and management from the Civil Engineering Department. Real Estate Development: 17-20 units This concentration is designed for students interested in working at the nexus of real estate, architecture and urban planning. Coursework includes upper division courses or courses for non-majors in the Schools of Policy, Planning and Development and Architecture.

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FBE Elective Courses and Instructors 2009 / 2010

Course Instructor Office Phone

FBE 391 Selale Tuzel, Ph.D. (Finance), UCLA, Tracey Seslen, Ph.D. (Economics), MIT, and Bob Bridges, MRED, University of Southern California, AIA

HOH-717 ACC-301L ACC-301F

740-9486 740-5796 740-6557

FBE 400x Tracey Seslen, Ph.D. (Economics), MIT ACC-301L 740-5796

FBE 421 Julia Plotts, MBA, University of Southern California, and Lloyd Levitin, J.D., University of San Francisco Michael Keane, J.D., University of Texas School of Law

BRI-307E ACC-301E BRI-307F

821-6798 740-6524 740-0765

FBE 427 Kerry Fields, J.D., Santa Clara University ACC-232B 740-9307

FBE 428m Kerry Fields, J.D., Santa Clara University ACC-232B 740-9307

FBE 429 Kerry Fields, J.D., Santa Clara University ACC-232B 740-9307

FBE 431 Tyrone Callahan, Ph.D. (Finance), UCLA Daniel Carvalho, Ph.D. (Economics), Harvard Harry DeAngelo, Ph.D. (Finance), UCLA

ACC-307A HOH-515

ACC-308D

740-6498 740-7677 740-6541

FBE 432 Duke Bristow, Ph.D. (Financial Economics), NYU Mark Weinstein, Ph.D. (Finance), University of Chicago

ACC-232A HOH-713

740-6513 740-6499

FBE 435 Antonios Sangvinatsos, Ph.D. (Finance), UCLA HOH-704 740-6532

FBE 436 Aris Protopapadakis, Ph.D. (Finance), University of Chicago HOH-721 740-6537

FBE 437 Duke Bristow, Ph.D. (Financial Economics), NYU ACC-232A 740-6513

FBE 440 Larry Harris, Ph.D. (Finance), University of Chicago HOH-806 740-6496

FBE 441 Christopher Jones, Ph.D. (Finance), University of Pennsylvania Pedro Matos, Ph.D. (Finance), INSEAD

HOH-722 HOH-523

740-9485 740-6533

FBE 453a FBE 453b

Mick Swartz, Ph.D. (Finance), University of Iowa ACC-301B 740-6527

FBE 458 Kerry Fields J.D., Santa Clara University ACC-232B 740-9307

FBE 459 Pedro Matos, Ph.D., (Finance), INSEAD HOH-523 740-6541

FBE 462 Vincenzo Quadrini, Ph.D., (Economics), University of Pennsylvania HOH-715 740-6521

FBE 464 Vincenzo Quadrini, Ph.D., (Economics), University of Pennsylvania HOH-715 740-6521

FBE 466 Bob Bridges, MRED, University of Southern California, AIA ACC-301F 740-6557

FBE 470 Bob Bridges, MRED, University of Southern California, AIA ACC-301F 740-6557

FBE 489 Levon Goukasian, Ph.D., (Math) University of Southern California BRI-308 740-9467

FBE Administrative Contact: Helen Pitts BRI-308 740-6554

Note: all phone numbers are area code 213.

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Business Economics Concentration (minimum 4 courses & 16 units)

The business economics concentration is appropriate for students interested in careers in consulting, banking, research for government or business, or those considering advanced professional degrees such as law or graduate study in economics, finance or other fields. Courses featuring a thorough exposure to issues in applied economics, international economics and law are relevant to those students who want a career in corporate planning or economic consulting. The concentration emphasizes the economic and legal underpinnings of today’s businesses and the development and application of computer-based econometric and forecasting models. Required courses for this concentration:

None

Select FOUR courses for this concentration: Units

BUAD 350 * Macroeconomic Analysis for Business Decisions 4 BUAD 351 * Economic Analysis for Business Decisions 4 BUAD 403 Legal Environment of Business 4 FBE 324 The Financial System 4 FBE 402 Government and Business 4 FBE 416 Managerial Economics 4 FBE 421 Financial Analysis & Valuation 4 FBE 428m Principles of Employment Law 4 FBE 435 Applied Finance in Fixed Income Securities 4 FBE 443 Introduction to Forecasting and Risk Analysis 4 FBE 445 Topics in Economic Analysis of Business Strategy and Policy 4 FBE 462 International Trade and Commercial Policy 4 FBE 464 International Finance 4

* If not taken to satisfy core course requirements.

Corporate Finance Concentration

(minimum 4 courses & 16 units) The corporate finance concentration prepares students for careers in financial management in the corporate treasury function or as corporate financial analysts, money managers and commercial and investment bankers. Required courses in the corporate finance concentration focus on the central principles of finance — net present value, market efficiency, agency costs, incremental cash flow, information asymmetries, adverse selection, arbitrage, modern portfolio theory, capital asset pricing, assessing and managing foreign exchange risk and sustainable growth. Theory and cases are used to understand the practice of finance in financial and non-financial firms. Topics covered include the valuation of securities, portfolio management, the choice of debt versus equity, dividend policy, the analysis of investment projects, mergers and acquisitions, financial restructuring, management of working capital, international financial management and financial analysis. Required courses for this concentration:

None

Select FOUR courses for this concentration: Units

ACC 415x Intermediate Financial Accounting for Non-Accounting Majors 4 FBE 421 Financial Analysis and Valuation 4 FBE 423 Introduction to Venture Capital 4 FBE 425 Management of Financial Institutions 4 FBE 429 International Business Law 4 FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 433 Compensation, Incentive, and Governance 4 FBE 436 Financial Management of Multinational Corporations 4 FBE 437 Entrepreneurial Finance: Financial Management of Developing Firms 4 FBE 458 Law and Finance 4 FBE 459 Financial Derivatives 4

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Financial Analysis & Valuation Concentration (minimum 5 courses & 16 units)

The financial analysis and valuation concentration will offer Marshall undergraduate students intensive instruction and training to prepare for careers in financial analysis and valuation, including positions in global financial institutions such as hedge funds and portfolio management firms and commercial and investment banks. Required courses in the financial analysis and valuation concentration, offered jointly through the Finance and Business Economics Department and the Leventhal School of Accounting, focus on advanced principles in financial accounting, financial reporting, financial analysis and valuation and corporate financial strategy. Theory and cases are used to understand the practice of finance and accounting in financial and non-financial firms. Accounting topics include corporate financial reporting, financial statement analysis, information disclosures related to complex securities, mergers and acquisitions, off balance sheet financing and stock options. Finance topics include the valuation of companies, management decision making related to capital structure, capital raising, mergers and acquisitions, financial restructuring, management of working capital, and other strategic alternatives for companies in search of growth opportunities and shareholder value. Required courses for this concentration: Units

ACC 415x Intermediate Financial Accounting for Non-Accounting Majors 4 ACC 416 Financial Reporting & Analysis 2 ACC 417x Advanced Financial Accounting for Non-Accounting Majors 2 FBE 421 Financial Analysis and Valuation 4

Select ONE additional course for this concentration: Units

FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 453a Advanced Practicum in Investment Management 4 FBE 453b Advanced Practicum in Investment Management 4

Investments and Financial Markets Concentration (minimum 4 courses & 16 units)

The investments and financial markets concentration provides training for students interested in careers in portfolio management, securities trading, and institutional and retail securities sales (brokerage). Investments and financial markets courses develop specific skills for analyzing and implementing investment strategies and for analyzing specific classes of securities. This training establishes basic principles governing the performance of securities markets and is excellent background for all careers involving raising or investing corporate or government funds. Required course for this concentration: Units

FBE 441 Investments 4

Select THREE additional courses for this concentration: Units

FBE 324 The Financial System 4 FBE 421 Financial Analysis and Valuation 4 FBE 423 Introduction to Venture Capital 4 FBE 429 International Business Law 4 FBE 435 Applied Finance in Fixed Income Securities 4 FBE 440 Trading and Exchanges 4 FBE 443 Introduction to Forecasting and Risk Analysis 4 FBE 446 Advanced Topics in Portfolio Management and Investment 4 FBE 453a Advanced Practicum in Investment Management 4 FBE 453b Advanced Practicum in Investment Management 4 FBE 459 Financial Derivatives 4 FBE 464 International Finance 4

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General Financial Management Concentration

(minimum 4 courses & 16 units) The general financial management concentration is designed for students who have not made a specific career choice but who are interested in finance. Students who complete the general financial management concentration will understand “real world” institutional details and finance principles applied by corporations and others operating in modern developed-economy financial markets. They will have had exposure to a wide range of financial problems and applications. This broad preparation is ideal for students interested in sampling a variety of applications of financial analysis. The courses in this concentration combine solid preparation in basic finance areas of financial analysis and investment strategies with the opportunity to pursue some application areas in greater depth. Select at least TWO of the following Required courses:

Units FBE 421 Financial Analysis and Valuation 4 FBE 431 Financial Policies and Corporate Control 4 FBE 432 Corporate Financial Strategy 4 FBE 441 Investments 4 FBE 446 Advanced Topics in Portfolio Management and Investment 4

Select up to TWO of the following courses for this concentration:

Units ACC 415x Intermediate Financial Accounting for Non-Accounting Majors 4 FBE 324 The Financial System 4 FBE 423 Introduction to Venture Capital 4 FBE 425 Management of Financial Institutions 4 FBE 428m Principles of Employment Law 4 FBE 429 International Business Law 4 FBE 433 Compensation, Incentive, and Governance 4 FBE 435 Applied Finance in Fixed Income Securities 4 FBE 436 Financial Management of Multinational Corporations 4 FBE 437 Entrepreneurial Finance: Financial Management of Developing Firms 4 FBE 440 Trading and Exchanges 4 FBE 453a Advanced Practicum in Investment Management 4 FBE 453b Advanced Practicum in Investment Management 4 FBE 458 Law and Finance 4 FBE 459 Financial Derivatives 4 FBE 462 International Trade and Commercial Policy 4 FBE 464 International Finance 4 FBE 470 Advanced Real Estate Analysis 4 FBE 489 Real Estate Capital Markets 4

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Program in Real Estate The objective of the Program in Real Estate is to provide in-depth exposure to theoretical and practical issues in real estate markets for students already exposed to the core business discipline. The program provides students with a broad framework of business theory and practice necessary to develop good management skills along with the knowledge of real estate institutions, relevant urban economics theory and theories of real estate market behavior. Courses emphasize applying business decision-making skills to real estate problems. Application areas emphasized in the two real estate options include real estate financing, marketing, investment management and public policy or real estate development. The Lusk Center for Real Estate, a campus-wide real estate research unit, is a co-venture of the Marshall School of Business and the School of Policy, Planning, and Development. The center facilitates real estate research and coordinates conferences and programs involving industry outreach and student-industry interaction. Specifically, the Lusk Center plays a significant role in placement and mentoring of both graduate and undergraduate students with interests in real estate careers. The Marshall School Program in Real Estate works hand in hand with the Lusk Center and the School of Policy, Planning, and Development to offer real estate students an integrated and current real estate education.

Real Estate Finance Concentration (minimum 4 courses & 16 units)

The study of real estate involves the application of business decision-making tools in the real estate industry. Emphasis is placed on economic and financial analysis of issues in real estate markets including those related to investment and development. Securing real estate debt and equity as well as entity level decision making are key parts of the curriculum. Required course for this concentration:

Units FBE 391 Real Estate Finance and Investment 4

Select TWO of the following courses:

Units FBE 427 Real Estate Law 4 FBE 466 Management of Real Estate Development: Feasibility Studies 4 FBE 470 Advanced Real Estate Analysis 4 FBE 489 Real Estate Capital Markets 4

Select at least ONE of the following courses for this concentration: Units FBE 324 The Financial System 4 FBE 421 Financial Analysis and Valuation 4 FBE 425 Management of Financial Institutions 4 FBE 441 Investments 4 FBE 459 Financial Derivatives 4 PPD 435 Analyzing Real Estate Markets for Planning and Development 4

The Real Estate and Construction Management and Real Estate Development concentrations permit the student to focus on the real estate development process from site acquisition through market analysis, site planning, building massing and concept preparation, cost estimation, entitlement, financing and project and construction management. Understanding this process prepares students for entry level positions with lenders, home builders, commercial developers, consultants and asset managers. Students opting for either of these two concentrations are urged to register with the real estate program director by January of the student’s junior year. Usually this would coincide with the student’s registration in FBE 391 during the fall semester of their junior year. Due to the number of units required in either of these concentrations, beginning real estate course work during the student’s junior year is encouraged. Registration with the program director will facilitate placement of interested students in meaningful internships between their junior and senior years.

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Real Estate & Construction Management Concentration

(minimum 6 courses & 21-22 units) Designed for students interested in construction and project management aspects of the real estate development process. Course work includes upper division courses in construction engineering and management from the Civil Engineering Department. Required courses for this concentration:

Units CE 460 Construction Engineering (Civil Engineering Department) 3 FBE 391 Real Estate Finance and Investment 4 FBE 466 Management of Real Estate Development: Feasibility Studies 4 FBE 470 Advanced Real Estate Analysis 4

Select TWO additional courses for this option:

Units FBE 427 CE 412

Real Estate Law, or Construction Law and the Property Development Process

4 3

CE 461 General Construction Estimating 3 CE 462 Construction Methods and Equipment 3 CE 472 Construction Labor Management 3

Real Estate Development Concentration (minimum 5 courses & 17-20 units)

Designed for students interested in working at the nexus of real estate, architecture and urban planning. Course work includes upper division courses or courses for non• majors in the School of Policy, Planning, and Development and the School of Architecture. Required courses for this concentration:

Units FBE 391 Real Estate Finance and Investments 4 FBE 466 Management of Real Estate Development: Feasibility Studies 4 FBE 470 Advanced Real Estate Analysis 4

Select ONE additional course for this option:

Units ARCH 106x Workshop in Architecture (School of Architecture) 2 ARCH 304x Intensive Survey: Prehistory to the Present 4 GEOG 281L Environmental Geographic Information Systems (Geography Department) 4 PPD 417 History of Planning and Development (School of Policy, Planning, & Development) 4 PPD 435 Analyzing Real Estate Markets for Planning and Development 4 PPD 470 History and Development of Cities 4

Select ONE additional course for this option: Units CE 460 Construction Engineering (Civil Engineering Department) 3 FBE 427 Real Estate Law 4 FBE 489 Real Estate Capital Markets 4

Note: Many of the courses in both of these options fulfill some of the course requirements for licensing in real estate brokerage and appraisal in the State of California.

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Senior Option Table

CONCENTRATIONS

Business Economics (16 Units)

Corporate Finance

(16 Units)

Financial Analysis & Valuation (16 Units)

General Financial Management

(16 Units)

Investments & Financial

Markets (16 Units)

Real Estate Finance

(16 Units)

Real Estate and Construction Management (20-22 Units)

Real Estate Development (17-20 Units)

REQUIRED Courses

None

None

FBE 421 (4) ACC 415x (4) ACC 416 (2) ACC 417x (2)

Choose at least 2

FBE 421 (4) FBE 431 (4) FBE 432 (4) FBE 441 (4) FBE 446 (4)

FBE 441 (4)

FBE 391 (4)

CE 460 (3) FBE 391 (4) FBE 466 (4) FBE 470 (4)

FBE 391 (4) FBE 466 (4) FBE 470 (4)

ELECTIVE Courses

Choose 4

BUAD 350* (4) BUAD 351* (4) BUAD 403 (4) FBE 324 (4) FBE 402 (4) FBE 416 (4) FBE 421 (4) FBE 428m (4) FBE 435 (4) FBE 443 (4) FBE 445 (4) FBE 462 (4) FBE 464 (4)

Choose 4

ACC 415x (4) FBE 421 (4) FBE 423 (4) FBE 425 (4) FBE 429 (4) FBE 431 (4) FBE 432 (4) FBE 433 (4) FBE 436 (4) FBE 437 (4) FBE 458 (4) FBE 459 (4)

Choose at least 1

FBE 431 (4) FBE 432 (4) FBE 453a (4) FBE 453b (4)

Choose up to 2

ACC 415x (4) FBE 324 (4) FBE 423 (4) FBE 425 (4)

FBE 428m (4) FBE 429 (4) FBE 433 (4) FBE 435 (4) FBE 436 (4) FBE 437 (4) FBE 440 (4)

FBE 453a (4) FBE 453b (4)

FBE 458 (4) FBE 459 (4) FBE 462 (4) FBE 464 (4) FBE 470 (4) FBE 489 (4)

Choose 3

FBE 324 (4) FBE 421 (4) FBE 423 (4) FBE 429 (4) FBE 435 (4) FBE 440 (4) FBE 443 (4) FBE 446 (4) FBE 453a (4) FBE 453b (4) FBE 459 (4) FBE 464 (4)

Choose 2

FBE 427 (4) FBE 466 (4) FBE 470 (4) FBE 489 (4)

Choose at least 1

FBE 324 (4) FBE 421 (4) FBE 425 (4) FBE 441 (4) FBE 459 (4) PPD 435 (4)

Choose 2

FBE 427 (4) or CE 412 (3)

CE 461 (3) CE 462 (3) CE 472 (3)

Choose 1

ARCH 106x (2) ARCH 304x (4) GEOG 281L (4) PPD 417 (4) PPD 435 (4) PPD 470 (4)

Choose 1

CE 460 (3) FBE 427 (4) FBE 489 (4)

NOTES: (a) * If NOT taken to satisfy core course requirements. (b) FBE 391 and/or FBE 421 may be taken in the student’s junior year if desired.

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UNDERGRADUATE ELECTIVE COURSE DESCRIPTIONS FBE 324: The Financial System This course examines the market for money, from its origins in gold mines to the inner workings of global financial institutions. The role and development of money and capital markets will be analyzed both from a U.S. and international perspective. Financial markets are composed of institutions and instruments shaped by economics and political factors. The economic and regulatory origins will be traced. Differences in cultural or legal emphasis among countries, leading to different financial system design will be highlighted. The underlying forces of change in the financial system will be identified, allowing financial institution managers to better understand and manage the risks. Prerequisite: BUAD 350 or 351 FBE 391: Real Estate Finance and Investment Urban real estate resources, definitions and background; financial aspects of real estate markets and investments; urban and regional real estate markets and the development process. How do you classify various property rights? What is an escrow? How do you begin analyzing a real estate project? Other topics covered include deeds and conveyances, sources of mortgage financing, principles of valuation and urban real estate structure and problems. This is an ideal introductory course providing students with an overview of real estate principles and practices. This is a prerequisite course for other real estate electives. (This course satisfies the "Principles" requirement for students interested in obtaining a California Salesperson's License.) Prerequisite: BUAD 306 FBE 400x: Introduction to Real Estate Finance and Development Case analysis examining economic and financial aspects of real estate decisions for non-business majors. Focuses on dynamics of financing, markers and the development process. Open to all major. Not available for credit as a senior options course for business majors or for students in the real estate option. (Duplicates credit in former FBE 200x) Prerequisite: None FBE 402: Government and Business American mixed capitalism, welfare, market failure, and the role of government in business; regulation and the public utilities, antitrust policy, and current topics in regulation-deregulation. FBE 416: Managerial Economics This course focuses on the application of microeconomic theory to the problems of the firm. The course will cover: Estimation and quantification of the demand for a product; the estimation and quantification of production costs (both accounting and economic); how firms decide to expand, vertically and horizonatally; when to contract for a service or produce the service. A major focus of the course will be on the alternative pricing policies adopted by firms including single price, price-discrimination, and multi-part pricing schemes. Prerequisite: BUAD 311, BUAD 351

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FBE 421: Financial Analysis and Valuation

This course develops and utilizes tools of financial analysis to evaluate the performance and assess the value of individual companies in an industry and strategic context. The course will cover various approaches or models for financial analysis and valuation. It will stress applied issues such as the choice among various terminal value assumptions in valuation analysis, the relation between growth and valuation, and assessments of leverage that incorporate off-balance sheet financing. Students will learn to apply tools of financial analysis and several valuation methodologies to evaluate a company’s strategic and competitive positioning, financial performance, and strategic alternatives. The major emphasis will be on utilizing and interpreting financial data to improve financial decision making. The applications we will cover in the course include enterprise and equity valuation in mergers and acquisitions, corporate restructurings, divestitures, management and leveraged buyouts, liquidations, and initial public offerings of common stock, and the use of financial analysis to predict financial distress, dividend policy changes, and future financing requirements. Prerequisite: BUAD 306 FBE 423: Introduction to Venture Capital Introduction to venture capital. Topics include fundraising, investing (emphasizing valuation techniques for venture capital securities) and exiting investments. Prerequisite: BUAD 306 FBE 425: Management of Financial Institutions The objective of this course is to study the financial industry which affects most people on a daily basis, is one of the most rapidly changing industries domestically and in the world today offering challenging and interesting careers. FBE 427: Real Estate Law By taking this course students learn the theory and practical applications of substantive real estate law. All major topics of real property law as well as current trends and issues will be addressed. Sufficient material is covered for preparation for real estate license examinations. By the end of the course you will be familiar with the following: • Characteristics of American law by which property rights are created, controlled, collateralized and transferred • Extent of real estate interests including landlord-tenant • Agency law and regulation of licenses • Acquisition contracts and conveyancing • Commercial and residential financing • Real estate development and financing • Construction law and remedies • Escrows and closing, including title insurance • Tax aspects of real estate ownership and transfers • Probate distributions • Public policy law and issues, including zoning and eminent domain

Prerequisite: None

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FBE 428m: Principles of Employment Law This course presents a comprehensive treatment of employment and labor law topics. The course commences with a review of the common law governing the employment relationship and proceeds to address the significant federal and state laws and regulations affecting that relationship. The course coverage includes the rights and responsibilities of private, unionized and public sector employers. Special emphasis is placed upon emerging and growing enterprises wherein legal liability, retention, and human resources issues have become increasingly complex. Issues relevant to international employers are also presented. Prerequisite: None FBE 429: International Business Law This course will require students to consider how the markets, people, and placed involved in trade, commerce, and exchanges throughout the world influences international business. Students will become aware of the effect that different cultural, political, and economic aspects of business have on each other. The course will require students to think how different international laws affect the way our own country and countries throughout the world do business. Specifically, students will examine such topics as the ethics of international law, international commercial dispute resolution national import and export regulations, international contract low, financial transactions, transport of goods, law of intellectual rights, and antitrust. Prerequisite: None FBE 431: Financial Policies and Corporate Control This course focuses on the development of a framework that is useful for understanding a broad range of major corporate financial decisions. Substantial emphasis will be placed on discussion of (i) the determinants of corporate debt and dividend policies, (ii) the allocation and value of corporate voting rights, and (iii) alternative methods of security issuance and retirement. The discussion will include application of the theory to issues such as common stock repurchases, initial public offerings, public offerings and private placements of seasoned stock, equity carve-out financing, junk bond financing, exchange offers and recapitalizations, management buyouts, high leverage restructuring, financial policy under conditions of distress, and the general relation between financial leverage and corporate investment policy. Prerequisite: BUAD 306 FBE 432: Corporate Financial Strategy The purpose of this course is to understand the practical aspects of the major types of investment and financial decisions of corporations using a mixture of cases and discussions, supplemented by lectures. We will apply the concepts and techniques you studied in BUAD 306 to real world situations. While our focus is primarily on corporate finance, we will also examine the links between finance and the main strategic objectives of the firm. The identification of these linkages and the constraints they impose on financial decisions makers is an important part of the course. Prerequisite: BUAD 306 FBE 435: Applied Finance in Fixed Income Securities The objectives of this course are to:

• Describe important fixed income securities and markets, and • Develop tools for valuing fixed income securities and managing interest rate risk.

The course covers traditional bonds and term structure concepts as well as fixed income derivatives and interest rate modeling. The study of fixed income securities is quantitative by nature and the material in this course is very analytical. Please keep this in mind in deciding whether to take the course. Prerequisite: BUAD 306

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FBE 437: Entrepreneurial Finance: Financial Management for Developing Firms This course involves studying how to manage a growing, developing firm from a finance point of view. The course starts by examining different types of profit and the implications of each. Then management of the financial statements followed by extensive study of cash flow analysis is made. This is a common theme that runs through the entire course– because developing firms run on cash, not profit. Next, the course develops criteria for a start-up business along with ways to develop the "package" and raise the money. Growing the company is the next topic and a different approach is undertaken from the usual cost of capital approach. Long and short-term sources of finance is then studied with particular reference to what is needed by developing firms. Cash management and accounts receivable management is then studied. Finally, the process of buying a company via a leveraged buy-out will be studied utilizing much of the material previously studied. Prerequisite: BUAD 306 FBE 440: Trading and Exchanges

This course will introduce students to the theory and practice of securities trading at exchanges and in dealer networks. Special attention will be directed towards understanding:

• Why and how people trade • The principals of proprietary trading • Why market institutions are organized as they are • How they are changing in response to information technology innovations • The origins of liquidity, volatility, price efficiency, and trading profits • The role of public policy in the market

To address these questions, we must understand why and how institutions, dealers, and individuals trade. Understanding trader behavior is a primary course objective. At the end of this course, you should be able to:

• Solve various trading problems • Recognize various trading styles • Judge whether you will be a successful trader • Evaluate and motivate brokers • Design markets • Effectively lobby policy-makers on market issues

Prerequisite: BUAD 306 FBE 441: Investments This course is designed to give students a rigorous exposure to contemporary investment and portfolio theory and practice. Analytical tools for evaluation of stocks, bonds, derivative securities, and security portfolios will be presented. Students will demonstrate and refine their understanding and ability to apply analytical concepts through completion of course projects. Prerequisite: BUAD 306 FBE 443: Introduction to Forecasting and Risk Analysis Develops econometric tools for projecting economic activity and estimating financial risk. The course will emphasize econometric applications of data analysis to problems currently focused on by investment banks to price financial assets, and by consultants to project business activity. Versions of the Capital Asset Pricing Model and factor models will be estimated using stock market data to provide the portfolio manager with efficient estimates of market risk. Prerequisites: BUAD 306 and BUAD 310 with a grade of B or better

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FBE 458: The Legal Environment of Finance Choice of noncorporate business forms: formation and operation of general partnerships, limited partnerships, and limited liability companies; Corporation law: formation and operation of corporations, liability of officers, directors, and shareholders; State corporation laws: California law, Delaware law; Operating as an entrepreneur: sole proprietorships, franchising, licensing; International business: operating in other countries, forms for conducting international business; Financing a corporation: going public, registration process with the SEC; Private placements: requirements for a private placement, small offerings; Going private: shareholder rights, shareholder squeeze-outs; Trading in securities: securities frauds, insider trading; Financing international transactions: sales of goods, letters of credit; Mergers and acquisitions: friendly mergers, shareholder rights; Hostile takeovers: tender offer rules, defensive maneuvers and poison pills; Credit: unsecured credit transactions, secured credit transactions; Leveraged buyouts: financing, junk bonds; Commodities regulation: commodities futures, commodities frauds; Banking: formation, asset and credit activities; Bankruptcy: private bankruptcy, business reorganizations. Prerequisite: None FBE 459: Financial Derivatives

The objective of this course is to introduce students to financial derivatives, particularly futures, options, and swaps. Students will learn the basic mechanics and cash flows of these instruments; how the markets operate; what factors affect their price; how one can formulate strategies to use such instruments for hedging, speculation, and arbitrage. We will learn not only how prices are initially formed, but also how to value derivatives as market conditions change. We will explore different models from the pricing of options including binomial trees and the important Black-Scholes model. This course will focus on the tremendous range of possibilities offered by derivatives for firms and financial institutions in managing or hedging risk, in speculating efficiently on market beliefs, and in profiting from potential arbitrage operations. Specifically, we will study derivative instruments on stocks, fixed income securities, foreign exchange, interest rates, and commodities. Main topics will include futures, options, and swaps. The options section will include the binomial model, the Black-Scholes model, and current innovations in option markets. Students taking this course will gain a solid working knowledge of derivatives, which have become the “buzzword” of finance in the 1990’s. They will be able to use this foundation to analyze widely publicized cases such as the collapse of the Barings Securities, or the Orange County debacle, or losses (and subsequent lawsuit against Bankers Trust) by Proctor and Gamble. These cases have made evident the tremendous dangers of improper use of derivatives, and thus teach a valuable lesson. Prerequisite: BUAD 306 FBE 462: International Trade and Commercial Policy This course surveys the major topics in the theory of international trade. Like all branches of economics, this course is concerned with decision-making with respect to the use of scarce resources to meet desired economic objectives. It is consequently concerned with how international transactions influence such things as social welfare, income distribution, employment, growth, and the possible ways public policy can affect the outcomes. We will focus on such questions as:

1) What determines the basis for trade? 2) What are the effects of trade? 3) What determines the value and the volume of trade? 4) What factors impede trade flows? 5) What is the impact of public policy that attempts to alter the pattern of trade?

We will cover most basic trade theories and their policy implications. In this course, we will analyze various trade and industrial policies, for instance, tariff, quota, VER, anti-dumping, customs union. We will also discuss the U.S. trade law, institutional framework of WTO/GATT, the Uruguay Round negotiations, the Multi-Fiber Agreement, and NAFTA. This course is concerned mainly with the non-monetary aspect of international economics. The monetary and balance of payments issues are only marginally discussed. Prerequisites: Econ 203 and Econ 205

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FBE 464: International Finance This course focuses on various aspects of international financial markets. The goal of the course is to prepare students to function effectively in the global economy. Most U.S. companies are involved in some way with international transactions. The course provides the framework and the institutional knowledge necessary to understand and to use the international financial markets effectively. The subjects covered in the course are: An overview of the current international arrangement and the major international financial institutions; spot foreign exchange rates, forward and futures contracts and how they are related; spot and future foreign exchange options; balance of payments issues; eurocurrency accounts; and swaps. Current policy issues and how they relate to the financial markets are discussed throughout the course. In addition, through individual and group projects, students have the opportunity to discover how actual exchange rates behave and to assess some current forecasting models. Prerequisites: BUAD 310 FBE 466: Management of Real Estate Development: Feasibility Studies Case study analysis of real estate development, combining with attention to macroeconomics, finance, legal aspects, marketing, and construction technology. Leaders from the industry are featured as guest speakers on special topics. Group development proposals will be prepared and presented. This is the capstone course for the Real Property Development and Management Program. Students are exposed to all aspects of the development process, enhanced by industry professionals who appear as guest speakers. Development teams are formed and students are required to prepare and present a development proposal. The proposals incorporate construction and valuation techniques, where students are able to apply the information learned in other real estate courses throughout this program. This course is only offered in the Spring Semester. Prerequisites: FBE 391 and FBE 470 or FBE 400x FBE 470: Advanced Real Estate Analysis This course is designed to facilitate mastery of the core skills required of real estate professionals, be they developers, financiers, brokers, investment managers, etc. Each position requires the ability to think critically about valuation and the elements used in its construction. The class helps develop this faculty by exercising the student’s analytical abilities in a number of different contexts. These include acquisition, development and financing of investment real estate, asset management, corporate real estate, lease analysis, distressed properties and the real estate workout process – including bankruptcy. The course is appropriate for students interested in real estate with strong finance skills and a desire to broaden their exposure to some of the unique aspects of real estate. Prerequisites: FBE 391 FBE 489: Real Estate Capital Markets This course is an introduction to the major concepts, principles, analytical methods and tools useful for making micro-level investment and finance decisions regarding commercial real estate assets. The primary objective of the course is to combine the theory of finance with the practice of real estate capital markets. We will study the "institutional" real estate decision making (e.g., banks, life insurance companies, pension funds, REIT s), regarding large-scale commercial property. At this level of focus, we must rigorously integrate real estate finance topics with, and build our methodology upon, the modern corporate finance and investments perspective. We will also cover such topics as various mortgage instruments, the theory and analytics of valuation and analysis of the mortgages and mortgage-backed securities, prepayment and default risk analysis of mortgages, structured finance and structure and investment analysis of REIT s. With this focus and objective in mind, this course is taught primarily as a "finance course", viewing real estate investment as one field of application of the financial economic principles that have been developed over the past three decades in the areas of corporate finance and securities investments. Prerequisites: FBE 391

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COURSES OFFERED THROUGH THE LEVENTHAL SCHOOL OF ACCOUNTING

Please check with the Leventhal School of Accounting for availability of the following courses. ACCT 415x Intermediate Financial Accounting for Non-Accounting Majors (Offered in the fall and spring semesters) This course is designed for students who will become users of financial statements. The content of the course will include analyzing the transactions of the firm through journal entries and t-accounts; preparing financial statements; analyzing actual financial statements in order to understand the underlying economic events; and discussing articles in the professional literature. As the course progresses, we will also examine the accounting issues related to such advanced topics as pensions, leases and stockholders’ equity. Prerequisite: BUAD 250b or BUAD 305. ACCT 416 Financial Reporting and Analysis This course examines the role of financial statement analysis in the evaluation of the firm and the prediction of its future condition. The course is designed to provide:

i. the skills to analyze financial statements ii. exposure to public sources of financial information used in capital markets

iii. an appreciation for the usefulness and limitations of financial statement analysis in specific decision contexts

Prerequisite: BUAD 215x or BUAD 306; and ACCT 370b or ACCT 412x or ACCT 415x. ACCT 417x Advanced Financial Accounting for Non-Accounting Majors Develop capabilities to identify, articulate and interpret financial statements reflecting complex merger and acquisition activities, with a focus on financial analysis and investment banking. Develop experience in analyzing accounting information from the perspective of its various users (e.g., equity investors, creditors, company management, auditors, etc.) Prerequisite: BUAD 215x or BUAD 306; and ACCT 370b or ACCT 415x.

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Finance and Business Economics Elective Courses and Schedule 2008-2009

Semester Offered Course Number Course Description

Spring Summer Fall

BUAD 403 Legal Environment of Business X X X

FBE 391 Real Estate Finance and Investment X X

FBE 400x Introduction to Real Estate Finance and Development X X

FBE 421 Financial Analysis and Valuation X X

FBE 427 Real Estate Law X X

FBE 428m Principles of Employment Law X

FBE 429 International Business Law X

FBE 431 Financial Policies and Corporate Control X X

FBE 432 Corporate Financial Strategy X X

FBE 435 Applied Finance in Fixed Income Securities X

FBE 436 Financial Management of Multinational Corporations X

FBE 437 Financial Management for Developing Firms X

FBE 440 Trading and Exchanges

FBE 441 Investments X X

FBE 443 Introduction to Forecasting and Risk Analysis X

FBE 458 The Legal Environment of Finance X X

FBE 459 Financial Derivatives X X

FBE 462 International Trade and Commercial Policy X X

FBE 464 International Finance X X

FBE 466 Management of Real Estate Development: Feasibility Studies X

FBE 470 Advanced Real Estate Analysis X X

FBE 489 Real Estate Capital Markets X

Please check with specific departments and programs for availability of the following courses:

ACCT 415x Intermediate Financial Accounting for Non-Accounting Majors

ACCT 416 Financial Reporting and Analysis

ACCT 417x Advanced Financial Accounting for Non-Accounting Majors

PPD 417 History of Planning & Development

PPD 435 Analyzing Real Estate Markets for Planning & Development

PPD 470 History & Development of Cities

ARCH 106x Workshop in Architecture

ARCH 304x Intensive Survey: Prehistory to the Present

CE 412 Construction Law & the Development Process

CE 460 Construction Engineering

CE 461 General Construction Estimating

CE 462 Construction Methods & Equipment

CE 472 Construction Labor Management

Geog 381L Environmental Geographic Information Systems

Department of Finance and Business Economics 3670 Trousdale Parkway, Ste. 308 Bridge Hall 308, MC-0804 Los Angeles, CA 90089-0804 Tel: 213/740-6515 • Fax: 213/740-6650 http://www.marshall.usc.edu/FBE fbe@usc.edu November 9, 2009