Finance, Insurance, and Real Estate

Warrington College of Business Administration

GRADUATE FACULTY 1998-99

Chairman: M. D. Ryngaert. Graduate Coordinator: M. Nimalendran. Graduate Research Professor: E. F. Brigham. Barnett Banks Eminent Scholar: M. J. Flannery. Joe B. Cordell Eminent Scholar: J. R. Ritter. SunBank Eminent Scholar: C. M. James. Professors: R. L. Crum; A. A. Heggestad; J. Kraft; D. C. Ling; M. B. Livingston; W. A. McCollough; D. J. Nye; H. C. Smith. Associate Professors: W. R. Archer; D. T. Brown; J. F. Houston; M. Nimalendran; R. C. Radcliffe; M. D. Ryngaert. Assistant Professor: A Naranjo. Lecturer: T. C. Tapley.

The Department of Finance, Insurance, and Real Estate offers graduate courses leading to the Master of Arts (M.A.) and the Doctor of Philosophy (Ph.D.) in business administration. Both degrees are offered with a concentration in either finance or real estate. In addition, a nonthesis M.A. is available in the real estate track which prepares students for high-level professional and managerial positions in the real estate industry. Students may plan their curriculum to fulfill the educational requirements of the Appraisal Institute for the MAI designation. Both finance and real estate are also available as concentrations within the MBA program.

The Ph.D. program has a strong emphasis on scholarly research training. Admission requirements include (a) minimum grade point average of 3.5 in the last two years of an undergraduate program and in any previous graduate-level work, (b) minimum GRE score of 1300 or GMAT score of 600 (both verbal and quantitative scores must exceed the sixtieth percentile), and (c) (for nonnative speakers of English) a minimum score of 550 on the TOEFL. Generally students will not be admitted to the Ph.D. program unless they have been offered financial assistance by the University.

The Department does not encourage application to the M.A. (thesis option) program, but unusual situations will be considered on a case-by-case basis.

Detailed information about the finance and real estate concentrations is provided below. For information about the MBA program, please consult that listing in the General Information section.

Finance.--The student pursuing a concentration in finance typically specializes in corporate finance, financial markets and institutions, or investments. The Ph.D. curriculum consists of course work of four types: research foundations, the major field, a minor or supporting field, and a breadth requirement.

The research foundation requirements are comprised of a set of six courses: ECO 7115--Microeconomic Theory I, ECO 7206--Macroeconomic Theory I, ECO 7408--Mathematical Methods and Applications to Economics, STA 4321 and 4322--Mathematical Statistics I and II, and at least one econometrics course suitable for the student's backgound and proposed thesis research.

The major field in finance consists of at least 16 credit hours in graduate course work in finance including FIN 7446 and 7447--Financial Theory I and II. Students may elect to have one "strong" minor (16 credit hours), two "weak" minors (8 credit hours each), or a supporting field which is not declared as a minor. If a supporting field is chosen, at least 16 hours of course work acceptable to the student's supervisory committee must be taken. The supporting field option is selected when a student wishes to take courses across a number of departments.

The breadth requirement applies only to students with no prior course work in business and consists of ACG 5005--Financial Accounting and ACG 5075--Managerial Accounting or their equivalents, plus two of the following: ECP 5702--Managerial Economics, MAN 5502--Production Operations Management, or MAR 5806--Problems and Methods in Marketing Management. Other requirements are listed in the General Information section of this catalog.

Real Estate.--The research foundations are identical to those listed above for finance. The major field, minor, and supporting field requirements have the same credit stipulation as those outlined above for finance, except that the major work is in real estate.

The breadth requirement, as in all concentrations for the business administration program, applies only to students entering without prior course work in business. It consists of at least three courses from the following list (two or more fields must be represented): BUL 5811--Managers and Legal Environment of Business, FIN 5437 and 5439--Finance I and II, FIN 6246--Money and Capital, MAR 5806--Problems and Methods of Marketing Management, MAR 6508--Consumer Behavior, and ACG 5005--Financial Accounting and ACG 5075 Managerial Accounting.

The M.A. with a concentration in either finance or real estate requires a minimum of 30 credit hours which includes a minor of at least 6 credits and a thesis. No more than 6 hours of FIN or REE 6971 count toward the 30 credit minimum.

The M.A. nonthesis option for the concentration in real estate consists of at least 32 credits of letter-graded courses. It is designed to ensure that each student acquires a basic knowledge of the various functional areas in real estate--real estate finance and investment, real estate development, real estate law and institutions, real estate asset management, and international real estate--and advanced training in specialized areas. The capstone course (REE 6948) involves actual projects in which students work in teams to undertake a real estate problem for real clients. This two-tiered program of study provides both a firm theoretical foundation for later professional effectiveness and an applied bridge to professional practice.

FIN 5248--Debt and Money Markets (4) Financial markets; institutions and instruments associated with debt funds; determinants of general level and structure of interest rates.

FIN 5405--Business Financial Management (3) Prereq: ACG 5065. Required of all MBA degree candidates who have had no basic business finance course. Analysis of business financing and investing decisions.

FIN 5437--Finance I: Asset Valuation, Risk, and Return (2) Prereq: must be MBA student. Required of all MBA students who lack basic business finance course. Analysis of business financing and investing decisions. Selected financial tools and concepts. Risk analysis and capital budgeting.

FIN 5439--Finance II: Capital Structure and Risk Management Issues (2) Prereq: FIN 5437. Required of all MBA students. Continuation of FIN 5407. Focus on corporate financial decision making.

FIN 5505--Equity and Capital Markets (4) financial markets; institutions and instruments associated with equity funds; mechanics and mathematics of stock prices; security analysis and factors influencing stock values.

FIN 6246--Money and Capital Markets (3) Prereq: FIN 5405, college-level mathematics, and statistics. Financial markets, with emphasis on flow of funds, interest rate determination, and allocation of resources.

FIN 6306--Investment Banking (2) Prereq: FIN 5439. Designed for MBA students. Hands-on approach to various aspects of investment banking industry. Lectures and guest speakers from investment banking firms.

FIN 6314--Financial Institutions (2) Prereq: FIN 5439. Designed for MBA students. Description and analysis of management decisions in a changing economic and regulatory environment.

FIN 6425--Corporation Finance (3) Prereq: FIN 5405 or consent of instructor. Designed for MBA students. The application of business finance problems. Students prepare written solutions to case problems.

FIN 6427--Measuring and Managing Value (2) Prereq: FIN 5439. Designed for MBA Students. Application of basic financial theory to valuing companies and creating value through sound financial decision making.

FIN 6429--Financial Decision Making (2) Prereq: FIN 5439. Designed for MBA students. Application of basic financial theory to assist managers in determining how to finance their businesses. Optimal debt policy, distribution of firm cash flow policies, equity issuance strategies, risk management, and use of hybrid securities in financing business.

FIN 6438--Study in Valuation (2) Independent analysis of firms in industry. Assessment of relative investment attractiveness of these firms and industry. Projects presented and critiqued by investment professionals.

FIN 6465--Financial Statement Analysis (2) Examination of fundamental analysis of corporate financial statements. Identification of reliable estimates of fundamental corporate earning power and earning risks.

FIN 6476--Venture Finance (2) Prereq: FIN 5439. Designed for MBA students. Capital structure and financing needs of start-up company as well as valuation of nonpublicly traded companies, intellectual property.

FIN 6518--Investment Concepts (2) Prereq: FIN 5439. Designed for MBA students. Survey of current theory and practice. Asset pricing theory and empirical test, bond and equity valuation, efficient markets, international management, and valuation and use of derivative securities.

FIN 6526--Portfolio Theory (2) Prereq: FIN 5439. Designed for MBA students. Survey of modern approaches in security portfolio management. Two levels of examination: 1) management of owner's aggregate portfolio and 2) security selection strategies, such as mutual funds, followed by managers.

FIN 6537--Derivative Securities (2) Prereq: FIN 5439. Designed for MBA students. Principles of derivatives. Structure and operation of markets, theoretical foundations and valuation models for various securities, and practical applications in investments and risk management, and financial engineering.

FIN 6545--Fixed Income Security Valuation (2) Prereq: FIN 5439. Designed for MBA students. Basics of interest rate determination, forward rates, and effects of interest rate uncertainty on holding period returns. Also pricing of fixed income securities with attached options.

FIN 6547--Interest Rate Risk Management (2) Prereq: FIN 5439. Designed for MBA students. Basic tools. Concepts of duration, immunization, and hedging with financial futures.

FIN 6608--Financial Management of the Multinational Corporation (2) Prereq: FIN 5439. Designed for MBA students. Issues unique to global operating environment or significantly different from their purely domestic counterparts. Use of different national as well as global capital markets to manage the finance function.

FIN 6642--Global Entrepreneurship (2) Designed for master's students in business. Consideration of global market context in starting entrepreneurial ventures internationally.

FIN 6638--International Finance (2) Prereq: FIN 5439. Designed for MBA students. Introduction to markets. Focus on foreign exchange markets, international bond markets, and international equity markets.

FIN 6727--Economic Organizations and Markets (2) Prereq: FIN 5439. Designed for MBA students. Economics based approach to organizational issues including compensation, assignment of decision rights, and assessment of performance.

FIN 6729--Economics Organizations and Markets (3) Economics-based approach to organizational issues including compensation, assignment of decision rights, and assessment of performance. Examination of corporate governance issues, i.e., conflicts between stockholders and managers.

FIN 6905--Individual Work in Finance (1-4; max: 7) Prereq: permission of department and Director of Graduate Studies. Reading and/or research in finance as needed by graduate students.

FIN 6930--Special Topics in Finance (1-4; max: 16) Selected topics in financial research, theory, or of special current significance.

FIN 6940--Supervised Teaching (1-5; max: 5) S/U.

FIN 6957--International Studies in Finance (1-4; max: 12) Prereq: admission to approved study abroad program and permission of department. S/U.

FIN 6971--Research for Master's Thesis (1-15) S/U.

FIN 7446--Financial Theory I (4) The first in a two-course sequence. Emphasis on the theory of the firm's investment and financing decisions.

FIN 7447--Financial Theory II (4) Emphasis on the theory of the financial intermediary system.

FIN 7808--Corporate Finance (4) Theory and empirical analyses of corporate financial decisions in a world of risk with both perfect and imperfect markets.

FIN 7809--Investments (4) Theory and empirical analyses of security investment decisions in a world of risk with both perfect and imperfect markets.

FIN 7810--Financial Markets and Institutions (4) The economic role of financial markets and institutions and how financial decisions are made by financial institutions.

FIN 7938--Finance Research Workshop (1-4; max: 7) Analysis of current research topics. Paper presentation and critiques by doctoral students, faculty, and visiting scholars.

FIN 7979--Advanced Research (1-12) Research for doctoral students before admission to candidacy. Designed for students with a master's degree in the field of study or for students who have been accepted for a doctoral program. Not open to students who have been admitted to candidacy. S/U.

FIN 7980--Research for Doctoral Dissertation (1-15) S/U.

REE 5105--Introduction to Real Estate Valuation and Investment Analysis (3) Designed for beginning graduate students in real estate. Valuation of all property types and investment analysis of income-producing properties.

REE 5145--Case Studies in Valuation Analysis and Report Writing (3) Analysis of various property types and appraisal situations. Case studies illustrate and teach application of appraisal methodology to typical assignment.

REE 6092--Corporate and International Real Estate (2) Prereq: REE 6505 or 6206 or 6705. Role of real estate in corporate settings and relationship between corporate and real estate objectives. Globalization of real estate markets and increasing importance of international business.

REE 6206--Primary Mortgage Markets and Institutions (2) Introduces firms, institutions, practices, and legal issues involved in housing finance. Also potential variation in home mortgage product design and issues that dictate mortgage choice.

REE 6208--Secondary Mortgage Markets and Securitization (2) High-level overview of secondary markets for mortgage debt and mortgage securities in U.S. Considers instruments, decisions, problems, and current issues.

REE 6395--Real Estate Investment and Securities (2) Coreq: REE 6505. Property acquisition analysis, leasing, effects of debt financing and taxes, risk and return considerations, real estate limited partnerships, real estate investment trusts, and portfolio theory.

REE 6505--Principles of Real Estate Decision Making (2) Introduction to real estate finance, valuation, and investment.

REE 6705--Geographic Information Systems and Location Analysis (2) Examines many traditional ways of analyzing and evaluating location. Introduces relevant data sources, (GIS) software and numerical and statistical techniques for computer-based study of spatial relationships.

REE 6707--Urban Market Research (2) Nonspatial aspects of real estate market research, focusing on urban property markets. Analysis of market segmentation, information, dynamics, growth and change, and uncertainty. Locating and acquiring information relevant to given type of market through various avenues.

REE 6905--Individual Work in Real Estate (1-6; max: 7) Prereq: permission of department and Director of Graduate Studies. Reading and/or research in real estate.

REE 6910--Supervised Research (1-5; max: 5) S/U.

REE 6930--Special Topics in Real Estate (1-4; max: 16) Selected topics in real estate research, theory, or of special current significance.

REE 6940--Supervised Teaching (1-5; max: 5) S/U.

REE 6946--Internship (1-3; max: 10) Prereq: at least one semester of graduate work in real estate. Work experience in a real estate office for graduate students who intend to become professional appraisers and analysts. S/U.

REE 6948--Capstone Seminar and Applied Project (4) Prereq: REE 6092 and 6208. Establishes direct link between concepts developed in prior courses and current industrial practices. Presentations by professionals on current issues and industry practices. Development by students of applied project case.

REE 6957--International Studies in Real Estate (1-4; max: 12) Prereq: admission to approved study abroad program and permission of department. S/U.

REE 6970--Appraisal Demonstration Report (6) A major work requiring students to integrate knowledge and analytical tools developed through course work and internship. Substantial research effort comprising market data collection and analysis undertaken during internship. Required for nonthesis option. H.

REE 6971--Research for Master's Thesis (1-15) S/U.

REE 7920--Real Estate Research Workshop (3; max: 6) Analysis of current research topics. Paper presentation and critiques by doctoral students, faculty, and visiting scholars.

REE 7979--Advanced Research (1-12) Research for doctoral students before admission to candidacy. Designed for students with a master's degree in the field of study or for students who have been accepted for a doctoral program. Not open to students who have been admitted to candidacy. S/U.

REE 7980--Research for Doctoral Dissertation (1-15) S/U.

RMI 6344--Risk Management and Insurance (2) Prereq: FIN 5439. Essentials of organizational risk management with emphasis on corporations. Application of financial and statistical tools to risk management decisions.

RMI 6905--Individual Work in Risk Management and Insurance (1-4; max: 7) Prereq: permission of department and Director of Graduate Studies.

RMI 6910--Supervised Research (1-5; max: 5) S/U.

RMI 6930--Special Topics in Insurance (1-4; max: 16) Selected topics in insurance research, theory, or of special current significance.

RMI 6957--International Studies in Insurance (1-4; max: 12) Prereq: admission to approved study abroad program and permission of department. S/U.

RMI 6971--Research for Master's Thesis (1-15) S/U.

RMI 7979--Advanced Research (1-12) Research for doctoral students before admission to candidacy. Designed for students with a master's degree in the field of study or for students who have been accepted for a doctoral program. Not open to students who have been admitted to candidacy. S/U.