Finance

CNBC's The Billionaire Next Door: video featuring Warren Buffett & MU

Any organization, whether it is a for-profit, non-profit or a governmental agency, requires a budget, prudent management of that budget and strategies for growth and expansion. Finance has been called the creation, allocation and  management of wealth, and the coursework in finance will focus on these three broad themes.

Opportunities in finance at the MU Crosby MBA Program include studying for the CFA, learning about Warren Buffett's investment strategy, and teaching an undergraduate course in finance.

Is a Career in Finance for You?

Because all organizations are constrained by financial resources, the skills taught in this coursework will be useful to you regardless of your choice of career options. MBA graduates in finance end up in a wide variety of careers:

  • Treasurer or financial manager for a corporation 
  • Consultant with a regional or national firm
  • Analyst or transaction specialist with an investment banking firm
  • Financial manager for a non-profit organization or governmental agency

Explore finance careers further......

Here are the coursework areas that you can choose from to prepare for a successful finance career:

  • The creation of wealth in corporate finance - students are exposed to modern practices and techniques of capital budgeting, risk management and investment analysis. The emphasis is to create value for the shareholders, who ultimately own the firm.
  • The allocation of wealth - emphasizing the methods of modern portfolio management, the role of international capital markets and the impact of institutions on the breadth of the financial marketplace.
  • Wealth management - offerings in investment theory, portfolio and investment management, and derivative securities. A recent new course offering is Investment Fund Management that allows the students to manage the Truman Tracy Memorial Investment Fund throughout the semester.

Required Courses

  • Acctcy 7310 Accounting for Managers* (3)  Introduction to the use of accounting information to help make informed decisions in various business settings.  Includes an introduction to basic financial management accounting concepts and procedures.
  • Financ 7210 Microeconomics for Business* (1.5)  Examination of how the behavior of consumers and the business decisions of firms affect supply, demand, and the resulting prices of goods and services in the market.
  • Financ 7220 Economics for Managers* (1.5)  Analysis of macroeconomic and microeconomic factors and their importance in the managerial decision making process.
  • Financ 7410 Managerial Finance 1* (1.5)  Introduction to financial management including the time value of money, capital budgeting techniques, risk measurement, and the valuation of financial securities.
  • Financ 7420 Managerial Finance 2* (1.5)  Continuation of the study of financial management with focus on the risk-return trade-off, capital structure, corporate payout policies, long-term financing, elementary options pricing, and mergers and acquisitions.
  • Finance Elective (3)

Concentration and Elective Courses

  • 8001 Topics in Finance Selected topics in finance, insurance or real estate. Offered on experimental basis. Recent topics have included Mergers & Acquisitions, Managerial Influences on Portfolio Selection: Philosophy of Warren Buffet, Real Estate Finance, and Financial Modeling.
  • 7620 Investment Strategy of Warren Buffett Survey and application of the investment philosophy and valuation methods of Warren Buffet.
  • 7820 Investment Fund Management A nalysis and management of securities and markets by participation in the management of a student-run portfolio of publicly traded stocks and bond s.
  • 8070 Security Markets and Investments Valuation of securities including stocks, bonds, options and futures; risk-return analysis of financial assets.
  • 8330 Investment Policy and Portfolio Management Intensive study of investment policies and procedures with emphasis on construction and management of portfolios of institutional investors. Application of programming techniques to selection and administration of securities.
  • 8320 Financial Markets Operations and structure of financial markets, including stock markets, bond markets, mortgage markets, and derivatives markets.
  • 8340 Derivative Financial Securities Comprehensive overview of derivative securities including financial futures and options, swaps, and financial engineering. Major topics: institutional aspects of these markets, advanced pricing models, pricing relationships among derivative securities, and risk shifting.
  • 8350 Financial Statement Analysis I An introduction to financial statement analysis with emphasis on interpretation and understanding of the balance sheet income statement, and statement of cash flow.
  • 8352 Financial Statement Analysis II A nalysis of company financial statements and related accounting information with emphasis on investors' decisions to invest in the company.
  • 8360 Equity Securities Analysis T heory and application of models and methods for valuing common stocks. 
  • 8370 Fixed-Income Securities Analysis Markets for fixed-income securities and theory and application of models for valuing bonds and other fixed-income securities.
  • 8410 Advanced Financial Management Examination of the modern theory of finance. Capital budgeting, capital structure, dividend theory and valuation.
  • 8440 Financing Multinational Business Unique problems of financing inter- and intra-national investment, operation, trade of private multinational business. Analysis of cases illustrating theoretical, environmental, functional, institutional considerations.
  • 8450 Ethics and Standards of Financial Practice Study of financial ethics with particular focus on standards of practice for investment performance standards.  Recommended for students planning to take the CFA exam. 
  • 8510 Management of Financial Institutions Study and analysis of policies, goals, practices, and organizational changes in the management of financial institutions and intermediaries.
  • 8520 Real Estate Investment Analysis of real estate as an investment including forecasting net operating income and cap rates, risk analysis estimation of return on investment, and syndication.
  • 8530 Real Estate Portfolio Analysis Portfolio analysis applied to real estate investment including diversification, portfolio theory, and management of real estate portfolios including real estate investment trusts (REITs).
  • 8560 Real Estate Securities Analysis A nalysis of real estate securities including in-depth financial statement analysis and valuation of real estate investment trusts (REITs) and real estate operating companies (REOC s).

Finance Faculty


The finance faculty have a strong commitment to both the development of new knowledge through research and sharing that knowledge through teaching. Our professors emphasize concepts in an applied fashion, integrating the use of real data and software in their coursework. They serve on numerous journal editorial boards, as well as on corporate boards of directors.  Some have CFA certification and most have a variety of business experiences.

Departmental research focuses on
  • capital markets: the regulation of capital markets, corporate governance, bankruptcy and legal analysis of corporate activity   
  • investment valuation, options markets, corporate governance and market microstructure
  • initial public offerings, seasoned equity offerings, investment banks, investments and corporate finance
  • corporate and international finance
  • banking and financial institutions
  • valuation of path-dependent derivative securities
  • asset pricing, institutional investors, mutual funds, liquidity, and asset volatility

 


Last Edited: 3/3/2011