Courses

Undergraduate Courses

View the list of undergraduate courses offered by the School of Management Finance Department

Graduate Courses

FE721/722 Financial Management
Financial Management examines three sets of problems: 1) saving and investment decisions by households, 2) investment and financing decisions by corporations, and 3) the role of securities markets and financial intermediaries in the economy.
Decisions today affect the timing of and uncertainty about future flows of income; both timing and risk determine the current value of those future flows. This course develops the tools required to analyze these decisions and their interaction within the financial system. Reserved for first year full time cohorted MBA students
Prerequisites: CD710 or OB710/711 or OB712/713
FE727/730 Economics and Management Decisions
The aim of the course is to present many of the decision problems managers face and to present the economic analysis they need to guide these decisions. In the first half of the course, microeconomic tools are used to structure complicated decision problems about production, pricing, investment, and other strategic issues, address uncertainty through probabilistic forecasts and sequential decisions. An additional goal is to distinguish different market structures and apply competitive strategies using game theory. In the second half, the focus shifts to the study of the national and global economic environments within which companies operate. We identify the drivers of fluctuations in GDP, inflation, interest and exchange rates, and other key features of the economies. Since governments play key roles in determining the fate of economies and companies, the final theme is the rationale for and efficacy of government policy tools. Reserved for first year full time cohorted MBA students.
Prerequisites: CD710 or OB710/711 or OB712/713
FE815 Competitive Decision Making
This course explores the strategies of decision-makers in a variety of competitive situations. The main topics include 1) bargaining, negotiation, and arbitration; 2) market competition; 3) competitive bidding; 4) group decisions in organizations; and 5) game theory. In most of these settings, optimal decisions call for cooperation as well as competition. Examples are drawn from a wide variety of managerial settings. [Text, cases and other readings; simulations.]
Prerequisites: FE727/730
FE817 Clean Energy Services: Financial Models and Incentive Structures
This course explores the reasons behind the slow adoption of clean energy technologies and develops business models that provide incentives and financing to accelerate adoption. We will use ―live‖ cases that allow students to work with industry participants. For example Cambridge Housing Authority, Home Depot, Public Services NH.
FE820 Corporate Financial Management
This course provides an in-depth analysis of financial considerations relating to corporate growth. It addresses the setting of financial or corporate goals in terms of maximizing shareholders’ equity, and relationships among dividend policy, debt levels, capital costs, return on investments, and growth.
Prerequisites: FE721/722
FE821 Advanced Corporate Finance
This course is designed for students who are pursuing careers in corporate finance within industrial corporations, corporate finance departments of investment-banking firms or in investment banking. The course provides follow-up on the basic financial frameworks and analytical methods outlined in introductory courses. Three primary areas are covered: risk management; agency, information, and psychology; and real options.
Prerequisites: FE721/722, FE820
FE822 Fixed Income Markets
This is a course primarily on fixed-income debt securities and markets. Emphasis is placed on the factors that determine bond yields, factors such as the coupon and maturity structure, liquidity, credit risk, and tax status of the security, and on measures of return and risk, statistics such as the yield to maturity, horizon yield, duration, and convexity. We will cover government debt (Treasuries and municipals), corporate bonds (investment-grade and high-yield), agency (Fannie Mae and Freddie Mac) and mortgage-backed debt created via securitization (i.e., collateralized mortgage obligations). We will emphasize how interest rate and credit derivatives are used to manage portfolios of fixed-income securities.
Prerequisites: FE721/722
FE823 Investments
This course looks at speculative markets, including organized security markets and exchanges; definitions of securities; relevant tax law and sources of investment information; principles of stock and bond valuation; and security price behavior. Also discussed in this course are problems and models associated with portfolio analysis and management.
Prerequisites: FE721/722
FE825 Advanced Topics in Investments
This course is about the theory and practice of science-based investing. It is intended for students who are either already working in the field of investments or plan to become professional investment advisers or portfolio managers. It focuses on building quantitative decision models for individual investors, investment firms, and pension funds. Subjects covered include the framing and quantitative modeling of lifecycle saving, investing, and risk-management decisions, and the design, production, and pricing of structured investment contracts to achieve targeted objectives.
Prerequisites: FE721/722, FE727/730, FE823
FE827 International Financial Management
This course examines the acquisition, investment, management, and conversion of funds in the international context. Other areas of discussion include: foreign exchange exposure and risk, investment decisions, international capital markets and banking, trade financing and tax planning, balance of payments and national goals, and financial planning from a multinational perspective.
Prerequisites: FE721/722
FE828 Fixed Income Derivatives
Term structure models are the basis for the valuation of any asset class. Fixed income instruments are by far the most important asset class in today’s financial markets. The course focuses on the valuation, hedging and management of fixed income securities. Basic theoretical and empirical term structure concepts are introduced. Basic short rate models are presented. The Heath-Jarrow-Morton term structure methodology is discussed in detail. Consistency requirements for the construction of term structure curves are presented. The Market LIBOR model and its application for the valuation of futures, forwards, swaps, caps, floors and swaptions and other interest rate derivatives is analyzed. The course emphasizes both theoretical and practical aspects of term structure models and fixed income securities.
Prerequisites: none
FE829 Futures, Options & Financial Risk Management
Futures and stock options are recognized as important tools of investment and risk reduction. This course covers the theory of futures and option pricing and develops a framework for analyzing hedging and investment decisions using futures and options.
Attention is paid to practical considerations in the use of these investments, tax and accounting issues and the institutional features of the market in which the various instruments are traded.
Prerequisites: FE721/722
FE834 Macroeconomics in the Global Environment
Macroeconomics is the study of the aggregate behavior of global market participants, i.e. consumers, firms, workers, governments, central banks, foreign investors. Decision making by investment bankers, product/sales managers, policy makers, or consumers inevitably rely on an understanding of the main forces driving GDP, inflation, unemployment, interest rates, and exchange rates. Consider these questions: 1.Should new consumer durable products be launched during recessions? 2. Are countries that experience high productivity growth good investment targets? 3. Will interest rates drop if the US government starts buying back its debt? 4. With significant liquidity demands by the US economy from the public sector, the household sector and businesses, what explains the low US interest rates? Are these factors expected to keep interest rates low also in the future? 5. Can the Euro boost productivity in Europe in the medium to long run and what are the competitiveness challenges for US businesses of such changes? 6. What are the economic effects of wars and how should they be financed? These and other issues will come up in the course. The main goal of this course is to provide a coherent framework that you can use to understand economic events as you confront them in your work environment.
Prerequisites: none.
FE850 Private Equity: Leveraged Buyouts
Private Equity (PE) has become a major force in the capital markets. This course will expose students to, and de-mystify, the world of PE. The focus will be centered on LBOs and their position in the ―alternative asset‖ class. Students will learn about the activities of a PE firm including formation, fundraising, investing (including deal structure, terms, due diligence and governance) and exiting. We will also discuss what other industry sectors serve or are affected by PE and who the players are. Case study and class participation will be the primary mode of learning.
Prerequisites: FE 820
FE882 Public Policy Analysis
This course explores the economics of the public sector and the impact government policy and programs have on society and business. The course provides students with tools to systematically examine the financing and measure the impact of government policies and regulations. It explores the rationale for government intervention, appropriate levels of intervention and how to measure the effectiveness of policies and regulations. This course is helpful to those who desire a deeper understanding of the central role government plays in the economy and how government impacts the business and nonprofit sectors.
Prerequisites: none.