Finance Courses

Description: This course is offered online. It is designed to help individuals better manage their current and future financial affairs. The course introduces the terminology and basic concepts underlying personal financial management. It helps students set goals and develop skills to conduct basic research when making personal financial decisions. The topics covered include financial planning, money management, personal income taxes, costs of consumer credit, concepts of time value of money, investing in stocks, bonds and mutual funds, mortgages, and retirement planning.

Component(s): Lecture

• Students enrolled in the BComm Major in Finance and Minor in Finance may not take this course for credit towards their major or minor.

• Students who have received credit for this topic under a COMM 499 number may not take this course for credit.

Description: This course introduces the concepts, principles, analytical methods and tools used for investment, development, and evaluation of real estate assets. The course focuses on issues such as market and feasibility analysis, investment property analysis, forms of ownership, valuation by alternate approaches, mortgages, borrower-lender relationships, investing in income property, commercial.

Component(s): Lecture

• Students enrolled in the BComm Major in Finance and Minor in Finance may not take this course for credit towards their major or minor.

• Students who have received credit for FINA 450 or for this topic under a COMM 499 number may not take this course for credit.

Description: This course provides an overview of financial management and introduces the basic terms as well as the role finance plays in the firm and in markets. Specifically, this course covers the following topics: the importance of a working knowledge of finance to non‑business students; the role of the financial manager; the differences between accounting income and cash flow and between book value and market value; the role of interest rates in the Canadian economy; the interpretation of financial ratios; the concept of time value of money; and making financial decisions.

Component(s): Lecture

• John Molson School of Business students may not take this course for credit. This course does not count towards the requirements for the Minor in Business Studies.

• Students who have received credit for this topic under a COMM 299 number may not take this course for credit.

Prerequisite/Corequisite:

The following courses must be completed previously: COMM 309; FINA 210 or FINA 450.

Description: This course focuses on fundamental concepts and analytic tools applied in real estate development. It incorporates the interdisciplinary character and the entrepreneurial nature of the development process. It covers different interactive stages and discusses the roles and motivations of various stakeholders involved in this decision- making process. In addition to the analysis of financial returns, this course may include discussion on the economic, social and environmental costs and benefits. Pedagogical methods include lectures, guest speakers, case studies, group project and field trip/property tour.

Component(s): Lecture

Prerequisite/Corequisite:

The following courses must be completed previously: COMM 309; FINA 210.

Description: This course focuses on analytical tools used for making commercial real estate investment decisions. It introduces students to methods of estimating and analyzing basic measures of performance at the property level. Students learn how to identify financial risks associated with real estate investment and prepare discount cash flow analyses for the projected holding periods. Topics covered include the fundamentals of publicly traded real estate, real estate investment trusts (REITs) and analysis at the portfolio level. Pedagogical methods include lectures, class discussion on contemporary issues in the real estate market, guest speakers, case studies, group project and evaluation of potential commercial real estate for investment purposes.

Component(s): Lecture

• Students who have received credit for FINA 450 may not take this course for credit.

Prerequisite/Corequisite: The following course must be completed previously: FINA 210.

Description: This course is intended primarily to provide an opportunity for more intensive study in one or more specific topics in real estate. The topic will vary according to the special interests of the professor and the students.

Component(s): Lecture

• Specific topics for this course are stated in the Undergraduate Class Schedule.

Prerequisite/Corequisite:

The following courses must be completed previously: COMM 221, COMM 309 .

Description: This course is designed for students to acquire and demonstrate knowledge of the fundamental principles and issues in international financial management. It covers such topics as foreign exchange markets, exchange rate behaviour, structure and meaning of the international balance of payments, the functioning of fixed and floating exchange rate systems, short- and long-term investment and borrowing decisions, euro-currency markets, foreign exchange risk management, and capital budgeting decisions for overseas investment. In sum, the topics are covered from the perspective of an individual who wishes to know how the international financial environment will affect the firm.

• Finance Majors and Minors may not take this course for credit toward their major or minor.

• Students who have received credit for IBUS 370 or FINA 470 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: COMM 211, COMM 309.

Description: This course provides students with an understanding of challenges and opportunities that banks and other financial institutions face in their global operations. It covers operations of financial firms in mature as well as emerging markets. Topics include an assessment of opportunities in foreign markets and difficulties that financial institutions face when dealing with unfamiliar economic and political environments; unique operations and challenges in international markets such as microfinance, international loans, project financing and assessment of political or sovereign risks, importance of global regulation and governance, and ethical issues associated with international operations within the financial services industry.

Component(s): Lecture

• Finance Majors and Minors may not take this course for credit toward their major or minor.

• Students who have received credit for FINA 482 or IBUS 382, or for this topic under a FINA 455 or IBUS 471 number, may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: COMM 221, COMM 309.

Description: This course is the first of two that provide a theoretical foundation upon which subsequent 400-level courses will be built. The course examines the allocation of capital in financial markets and the determination of the relative prices of financial assets. Topics covered include utility theory, arbitrage pricing theory, and asset pricing models such as the Capital Asset Pricing Model and the option pricing model. Applications explored include arbitrage, the design of markets and the appropriate responses of individuals and firms to changes in market conditions as well as to market imperfections.

Component(s): Lecture

• Students who have received credit for MACF 301 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: COMM 221, COMM 309. The following course must be completed previously or concurrently: FINA 385.

Description: This course focuses on the financial theory of the firm and examines the Modigliani-Miller propositions, agency theory, and asymmetric information theory. Topics covered include capital structure and the cost of capital, investment and financing decisions, real options, valuation and issuance of new securities, mergers and acquisitions, and leveraged buyout decisions.

Component(s): Lecture

• Students who have received credit for FINA 390 or 400 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: FINA 380 or FINA 385; and FINA 390 or FINA 395.

Description: This course is concerned with the key aspects of short‑term financial management. It begins with a brief coverage of the institutional environment facing the financial manager in Canada. A detailed coverage of sources for short‑term borrowing and investments is presented. The structure of the Canadian financial system along with a description of the various methods of effecting payments as well as the clearing and settlement system are covered. Topics in overall liquidity management are briefly reviewed from a theoretical perspective. Traditional subjects in cash management such as collections, disbursement and control, forecasting, company bank relationship, short‑term investment, and borrowing are examined next. Such new developments as electronic data interchange and EFT/POS are also examined. The course also provides a coverage of trade credit both from a theoretical positive standpoint and a normative viewpoint.

Component(s): Lecture

Prerequisite/Corequisite: The following courses must be completed previously: FINA 380 or FINA 385; FINA 390 or FINA 395.

Description: This course uses case discussions to focus on the application of the principles of finance learned in FINA 385 and FINA 395 in real‑world contexts. Cases cover topics in corporate finance, investments, and financial markets and institutions.

Component(s): Lecture

• Students who have received credit for FINA 490 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385 and FINA 395.

Description: This course provides a basic level of understanding of various technical analysis methodologies that are used by investment professionals and the investing public. The course examines market microstructure and order entry mechanics, high‑frequency trading, behavioural finance and the efficient market hypothesis. The main topics include analysis of price charts to forecast future price trends and patterns, development and testing of a trading system, Dow theory, moving averages, momentum, sentiment, relative strength and intermarket analysis. This course is an excellent preparation for several investment industry designations. Pedagogical methods include lectures, a presentation by an industry expert, and a group project to build and test a trading system using simulation and investment software in the John Dobson – Formula Growth Investment Room.

Component(s): Lecture

• Students who have received credit for this topic under a FINA 455 number may not take this course for credit.

Prerequisite/Corequisite: Permission of the Department is required.

Description: This course focuses on evaluating stocks using modern valuation methods. The main topics include understanding the different investment styles, reading and interpreting financial statements from an investor’s perspective, industry analysis and stock analysis. Pedagogical methods include lectures, discussion of books, presentations by industry experts, use of the Formula Growth Investment Room and evaluation of potential companies for investment purposes.

• Students who have received credit for FINA 410 or for this topic under a FINA 455 number may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385 and FINA 395.

Description: This course focuses on investment valuation, particularly equity valuation, from the viewpoints of both the individual investor and the institutional investor. Students learn how to analyze industries, sectors and individual companies. Topics include a range of valuation models such as the dividend discount model, the comparable assets model, and the free cash flow model, to determine the intrinsic value of a stock. Students learn how to use investment tools such as Bloomberg for investment analysis. Students are required to prepare an industry analysis and stock recommendation using live data at the end of the course.

Component(s): Lecture

• Students who have received credit for FINA 409 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385; FINA 395.

Description: This course focuses on modern investment theory and its application to portfolio management for individuals and institutions, such as mutual funds, hedge funds, pension plans and endowments. Topics include: a) construction of optimal portfolios, b) theory and tests of the classic capital asset pricing models, c) arbitrage pricing theory and multifactor models, d) criteria for evaluation of investment performance, and e) some of the latest strategies in active and passive portfolio management. In addition to the textbook, students read journal articles, discuss cases and learn investment software in the John Dobson – Formula Growth Investment Room.

Component(s): Lecture

Prerequisite/Corequisite:

The following courses must be completed previously: FINA 380 or FINA 385; FINA 390 or FINA 395.

Description: This course is a comprehensive analysis of the options and futures markets in North America. The student is introduced to the different markets for these instruments and their institutional details. The different types of options and futures currently trading are examined. The principles of valuation of futures and options, their use in risk management through hedging techniques and their use in speculative strategies are studied. Emphasis is placed on the analysis of financial options and futures.

Component(s): Lecture

Prerequisite/Corequisite: The following course must be completed previously: FINA 412.

Description: This course focuses on advanced topics in the area of derivatives. Topics covered include the valuation of derivatives using numerical procedures and martingales, modelling the term structure of interest rates, valuation of interest rate swaps, interest rate options, caps, floors, swaptions and exotic options, and application of derivatives in risk management such as value at risk models, estimation of volatility and credit risk derivatives.

Component(s): Lecture

Prerequisite/Corequisite: The following courses must be completed previously: FINA 380 or FINA 385; and FINA 390 or FINA 395.

Description: This course examines the financial aspects of mergers and acquisitions. Basic financial theory and empirical evidence related to corporate control activity is discussed. Some of the topics covered include target identification and valuation, bidding strategies, defensive strategies, financing strategies and growth by acquisition strategies. In addition, going private transactions such as leverage buyouts and management buyouts are discussed.

Component(s): Lecture

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385; FINA 395.

Description: This course examines how the behaviour of managers, boards of directors, or financial analysts deviates from models of “rational” behaviour in some situations, and how these deviations affect shareholder wealth. The course explores how behavioural characteristics like mental accounting, overconfidence, herding, framing and loss aversion cause the assumptions of rational economic behaviour to break down at both the individual and systemic levels.

Component(s): Lecture

• Students who have received credit for this topic under a FINA 455 number may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: COMM 309, FINA 210.

Description: The course focuses on concepts, principles and analytical methods of real estate finance. It begins with a comprehensive investigation of mortgages from the perspective of both borrowers and lenders. The basics are then applied to analyze mortgage risk, commercial mortgage-backed securities (CMBS), market and mortgage securitization, as well as investment decisions on acquisition and financing of commercial real estate assets. Pedagogical methods include lectures, class discussions on contemporary issues, guest speakers, case studies, group project and risk analysis of mortgage-backed securities.

Component(s): Lecture

• Students who have received credit for FINA 450 may not take this course for credit.

Prerequisite/Corequisite: The following course must be completed previously: FINA 385. The following courses must be completed previously or concurrently: FINA 390 or FINA 395.

Description:

This course presents the framework, analysis, and metrics involved in the growing practice of factoring sustainability into investment strategy, especially as it pertains to financial measurement of environmental, social, and governance (ESG) risks and opportunities. The course highlights the actions taken by investors, policymakers, central banks, regulators, and data providers to recognize ESG factors and help investors navigate the risks and opportunities presented by them.

Description: This course is intended primarily for Finance Majors and Minors. It provides an opportunity for more intensive study in one or more specific topics of finance. The topic varies according to the special interests of the professor and the students. Enrolment is restricted and is subject to departmental approval.

Component(s): Lecture

• Specific topics for this course and prerequisites relevant in each case are stated in the Undergraduate Class Schedule.

Prerequisite/Corequisite:

The following courses must be completed previously: FINA 409 or FINA 410; and FINA 412.

Description: This course focuses on developing practical skills in trading financial securities. Topics covered include general trading practices, fundamental and technical analysis, term structure of interest rates, arbitrage opportunities, and trading strategies using options, futures and options on futures contracts. Speakers from the finance industry are also invited to share their experiences with the students.

Component(s): Lecture

• Students who have received credit for this topic under FINA 455 may not take this course for credit.

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385; FINA 395.

Description: This course introduces students to the essentials of international financial management. After a brief introduction to the international monetary system, we study the organization of the foreign currency and international financial markets. The course then discusses the determinants of exchange rates, followed by a discussion of the risks that businesses operating in international markets face due to changing exchange rates and financial turmoil in international financial markets. The subsequent sections of the course are devoted to understanding techniques and strategies for managing different types of exchange risks after various foreign currency derivatives — forward, futures, options and swaps — have been studied.

Component(s): Lecture

• This course is offered for BComm Major in Finance and Minor in Finance only.

• Students who have received credit for FINA 370 or IBUS 370 may not take this course for credit.

Prerequisite/Corequisite:

The following course must be completed previously: FINA 470.

Description: This course addresses advanced issues that corporations or investors face when they expand their operations in the international markets. Corporations face challenges in the areas of international capital budgeting, determining their cost of capital and their capital structure, assessment of political risk, international working capital management, financing international trade and international corporate governance. This course discusses how these decisions become more complex in an international environment due to changing exchange rates and multiplicity of economic and political environments. The course also addresses the difficulties of choosing appropriate pricing models in an international context.

Component(s): Lecture

Prerequisite/Corequisite: The following courses must be completed previously: FINA 385; FINA 395.

Description: This course provides students with an integrating framework for examining various types of financial institutions and the means of managing their operations. Topics include uniqueness of financial institutions; application of portfolio and corporate finance theories to the management of assets, liabilities, capital structure and off‑balance sheet operations; interest rate and liquidity risk exposure; loan portfolio management, loan pricing and credit rationing; capital adequacy and regulatory environment. The strategic repercussions for such institutions, given the rapidly changing financial and regulatory environments, are also reviewed through the analysis of cases illustrating current issues.

Component(s): Lecture

• Students who have received credit for FINA 480 may not take this course for credit.

Prerequisite/Corequisite: The following course must be completed previously or concurrently: FINA 481.

Description: This course provides students with an integrating framework to understand the risks, challenges and opportunities that banks face in their global operations. The course covers both commercial and investment banking activities in mature as well as emerging markets. The course begins with an examination of opportunities that foreign markets offer as well as difficulties that banks face when dealing with unfamiliar economic and political environments abroad. This is followed by a discussion of banking operations in international and foreign markets. Topics for this discussion may include microfinance, international loans, project financing and an assessment of political or sovereign risks. The impact of foreign operations on mitigation or enhancement of various risks associated with home country operations is examined. The course also examines the importance of global regulation as well as governance and ethical issues associated with international banking.

Component(s): Lecture

• This course is offered for BComm Major in Finance and Minor in Finance only.

• Students who have received credit for FINA 382 or IBUS 382, or for this topic under a FINA 455 or IBUS 471 number, may not take this course for credit.

Prerequisite/Corequisite: Enrolment in the BComm Honours in Finance program is required.

Description: In the first term, the seminar covers methodology and recent advances in research in topics covered in the Finance curriculum. In addition, students begin working on a thesis/project to be conducted under the supervision of a faculty member. In the second term, students complete their thesis/project and are required to submit a written report to be presented at the seminar at the end of the term.

Component(s): Lecture

• This seminar is offered to honours students in Finance over a period of two terms.