Graduate degree: finance subprogram for the Ph.D. in business administration
The Department of Finance is committed to delivering programs of study that integrate the technology and analytics of today's global financial community. The goal is to provide students with the technical skills they need to enhance their managerial effectiveness, whether they work in large corporations, small organizations, or private consulting.
The department offers the undergraduate major in finance and the subprogram in finance that leads to the Ph.D. in business administration. Additionally, they participate in the M.B.A. program, which is offered by the Tippie School of Management; see Master of Business Administration Program in the Catalog. The department also partners with the Emmett J. Vaughan Institute of Risk Management and Insurance to offer the undergraduate Certificate in Risk Management and Insurance.
Undergraduate Program of Study
Graduate Program of Study
- Finance Subprogram for the Doctor of Philosophy in Business Administration
FIN:1300 First-Year Seminar1 s.h.
Small discussion class taught by a faculty member; topics chosen by instructor; may include outside activities (e.g., films, lectures, performances, readings, visits to research facilities).
FIN:3000 Introductory Financial Management3 s.h.
Financial management goals and decision making; valuation of bonds and stocks, risk and return analysis, portfolio diversification, market efficiency, asset pricing, cost of capital, agency theory, capital budgeting, financial planning. Prerequisites: ECON:1200 and ACCT:2100 and ECON:1100. Requirements: 60 s.h. completed.
FIN:3020 Professional Finance Seminar1 s.h.
Seminar topics include finance careers, curriculum, understanding of current events, internships, professional designations, ethics, and general finance acumen.
FIN:3100 Financial Information Technology2 s.h.
Applications of commonly used financial software and data systems reviewed by student teams. Corequisites: FIN:3000.
FIN:3200 Investment Management3 s.h.
Investment in marketable securities in domestic and international markets; financial markets, securities trading, evaluation of risk/return trade-off, formulation and implementation of investment strategies, efficient portfolio formation. Prerequisites: FIN:3000. Corequisites: FIN:3100.
FIN:3300 Corporate Finance3 s.h.
Advanced managerial decision making; corporate financial policy, dividend policy, agency theory, corporate restructuring, capital structure strategies, mergers and acquisitions, option pricing fundamentals, convertible debt, callable debt, warrants. Prerequisites: FIN:3000. Corequisites: FIN:3100.
FIN:3400 Principles of Risk Management and Insurance3 s.h.
Introduction to risk and insurance; risk identification and evaluation, demand for insurance, effects of limited liability, theory of moral hazard and adverse selection; business and personal risk; insurance as a risk management tool. Prerequisites: ECON:1100 and ECON:1200.
FIN:3500 Hawkinson Scholar Seminar1 s.h.
Advanced skill and understanding required for pursuit of investment banking, management consulting careers; specialized résumé and interview training, industry presentations, relevant case assignments.
FIN:3510 Hawkinson Scholar Seminar: Topics in Finance0 s.h.
Subsectors in the financial services industry, including hedge funds, investment banking, commercial banking; valuation techniques used in real-world mergers, acquisitions, equity offerings, debt financing, and so forth.
FIN:4020 Topics in Finance3 s.h.
FIN:4050 Directed Readings in Financearr.
Individually guided readings in selected topics.
FIN:4210 Futures and Options3 s.h.
Use of options, futures, and other derivative securities in financial management; understanding types of derivative securities, markets, trading technology; applications of risk management and speculation; pricing relations with underlying securities. Prerequisites: FIN:3100 and FIN:3200.
FIN:4220 Fixed Income Securities3 s.h.
Theories of fixed income securities, term structure of interest rates; asset pricing models, valuation of fixed income securities and contingent claims, fixed income portfolio management, immunization strategies, yield curve analysis. Prerequisites: FIN:3000 and FIN:3100.
FIN:4230 Real Estate Process3 s.h.
Fundamentals of real estate finance and investments; economic base analysis, asset analysis, market analysis, mortgage markets, underwriting, alternative mortgages, mortgage-backed securities, real estate securitization, land development, valuation principles, investment analysis, tax consideration, portfolio management. Prerequisites: FIN:3000 and FIN:3100.
FIN:4240 International Finance3 s.h.
International monetary systems, exchange rate determination, use of currency derivative in hedging and risk management, currency swaps, foreign direct investment, international corporate finance, international capital budgeting, international portfolio investment, Third World debt, privatization, joint ventures. Prerequisites: FIN:3000 and FIN:3100.
FIN:4250 Applied Equity Valuation3 s.h.
Equity valuation and portfolio management techniques by investment professionals; economic forecasting, industry analysis, financial statement analysis, spreadsheet modeling, cost of capital estimation, equity valuation and portfolio construction; students manage the University of Iowa's Krause Fund (an endowed equity portfolio that blends academic rigor with real-world portfolio management experience). Prerequisites: FIN:3100 and FIN:3000. Requirements: UI cumulative g.p.a. of at least 2.80.
FIN:4310 Advanced Corporate Finance3 s.h.
Understanding and evaluating major corporate actions such as mergers and acquisitions, initial public offerings, spin offs, and debt and equity issuance; introduction to venture capital and leveraged buyouts; includes a substantial experiential learning component and attempts to nudge students away from textbook-based learning towards acquiring practical skills needed to succeed in the corporate finance industry; students will be required to collect and evaluate financial information and be challenged to think beyond the lecture material presented in the classroom. Prerequisites: FIN:3100 and FIN:3300.
FIN:4320 Commercial Banking3 s.h.
Management of commercial banks and financial service firms; asset and liability management, credit policy, capital risk, liquidity planning, use of swaps and derivatives to hedge interest rate risk, global banking, investment strategies. Prerequisites: FIN:3100 and FIN:3000.
FIN:4330 Investment Banking3 s.h.
How investment banks fill critical roles in maintaining well-functioning financial markets and provide access to capital and strategic advice to companies and governments; recent global financial crisis; how banker's role as intermediary between companies and markets adds value and creates conflicts and risk. Prerequisites: FIN:3100 and FIN:3300 and FIN:3000.
FIN:4340 Wealth Management3 s.h.
Financial services for client wealth management; how to make personal investment decisions and build diversified, comprehensive investment portfolios; investment theory; common behavioral biases that lead to investment pitfalls, mistakes; wealth management objectives, portfolio risk and reward, asset allocation, portfolio diversification, tax shield structures, retirement plans, wealth protection, risk management, behavioral finance, psychology of investing. Prerequisites: FIN:3000 and FIN:3100.
FIN:4410 Corporate and Financial Risk Management3 s.h.
Analysis and treatment of pure and financial risks faced by business organizations; development and implementation of the risk management process, application of varied risk management techniques to identified exposures; how businesses manage risk and how insurance is used to manage the cost of risk; case studies. Prerequisites: FIN:3400.
FIN:4420 Property and Liability Insurance3 s.h.
Fundamentals of commercial property and liability insurance; commercial property and liability contracts, functions of property and liability insurers; regulation and financial analysis of property and liability insurers; marketing, underwriting, rate making, claim settlements. Prerequisites: FIN:3400.
FIN:4430 Life and Health Insurance3 s.h.
Types of life insurance and annuity contracts and their uses; regulation of life and health insurers; development of financial plans using life insurance products; Social Security, group, and individual health insurance products, including major medical, disability income, long-term care policies; marketplace analysis; contractual provisions, determination of human life values, mathematics of life contingencies and pricing. Prerequisites: FIN:3400.
FIN:4440 Employee Benefit Plans3 s.h.
Management of employee benefit plans (e.g., group life and health insurance, retirement programs); design, administration, and financing of employee benefits; federal administration of employee benefit plans; funding requirements, financial alternatives; funding and vesting of retirement annuities; design and management of health care plans, including "cafeteria" approach and nonqualified deferred compensation arrangements; economic effects and financing employee benefits and retirement plans in private and public sectors. Prerequisites: FIN:3400.
FIN:4450 Risk Modeling3 s.h.
Theory used to solve real-life problems taken from a diverse set of risk management applications; varied areas where risk analysis has become important (i.e., finance, insurance, corporate risk management, personal financial planning); principles of probability theory, mathematical finance, and actuarial science developed for use in quantitative analysis of important risk management problems; spreadsheet-based course. Prerequisites: FIN:3000.
FIN:4900 Academic Internship1-3 s.h.
Professional internship experience with associated academic content.
FIN:4999 Honors Thesis in Finance3 s.h.
Independent student project directed by faculty or staff advisor; culminates in thesis that conforms to University Honors Program guidelines; may include empirical research, library research, applied projects. Requirements: admission to the Tippie College of Business honors program.
FIN:7110 Finance Theory I3 s.h.
Consumption-based models of asset pricing; arbitrage, contingent claims; market efficiency and information economics, behavioral models; emphasis on theory. Requirements: Ph.D. enrollment.
FIN:7120 Seminar in Corporate Finance3 s.h.
Valuation (DCF and CAPM); valuation under certainty, uncertainty; financial structure, cost of capital; dividend policy; firm investment in perfect, imperfect capital markets. Requirements: Ph.D. enrollment.
FIN:7130 Finance Theory II3 s.h.
Continuous time theories of financial markets, including connection between an arbitrage-free pricing system and martingales; pricing of contingent claims, general equilibrium and term structure theory. Requirements: Ph.D. enrollment.
FIN:7140 Advanced Empirical Finance3 s.h.
Market efficiency and term structure theory tests; tests of asset pricing models, dividend policy and financial structure issues. Requirements: Ph.D. enrollment.
FIN:7850 Seminar in Finance1 s.h.
Requirements: Ph.D. enrollment.
FIN:7950 Directed Reading in Finance-Ph.D.arr.
Requirements: Ph.D. enrollment.
FIN:7975 Thesis in Businessarr.
FIN:9000 Directed Readings in Finance-M.B.A.arr.
FIN:9010 Contemporary Topics in Financearr.
FIN:9150 Financial Modeling and Firm Valuation2-3 s.h.
How to model firm value from a discounted cash flow perspective; identify a company’s key value drivers, create spreadsheet valuation models; projected financial valuation integrates projected pro forma accounting statements; forecasting, free cash flow estimation, industry competitive analysis. Prerequisites: MBA:8180.
FIN:9200 Portfolio Management2-3 s.h.
Introduction to fundamental elements of modern portfolio theory, application to investment analysis; investment environment, instruments, types of investors; concepts of risk and return, broad perspective on historical risk and return of various asset classes; asset allocation decision, risk and return dynamics of a multiple securities portfolio; varied asset pricing models, how capital markets work for investors and users of capital. Prerequisites: MBA:8180.
FIN:9210 Derivatives2-3 s.h.
Examination of the wide range of derivative securities that cover the financial landscape; the market place, trading, and investors; different derivative securities in existence, their relationship with the underlying securities, and pricing; applications of derivative securities to risk management and speculation; application of principles to fixed income, international finance, real estate, and securitization. Prerequisites: MBA:8180.
FIN:9220 Fixed Income Securities2-3 s.h.
Conceptual framework and tools to undertake the valuation of fixed income securities and the management of fixed income portfolios; varied fixed income instruments and the markets in which they trade; introduction to basic building blocks of fixed income analysis, including concepts of duration, convexity, and term structure of interest rates; application of concepts in bond portfolio immunization strategies; use of interest rate derivatives in portfolio hedging applications. Prerequisites: MBA:8180.
FIN:9230 Real Estate Finance and Investments2-3 s.h.
In-depth understanding of concepts and techniques of real estate financial analysis, equity investment decision making; real estate investing from analysis of developments through the securitization of mortgages; mortgage markets and pricing, real estate finance and investments, mortgage-backed securities, development process, real estate valuation, tax effects, securitized real estate, real estate cycles, application of derivative instruments, strategic asset allocation. Prerequisites: MBA:8180.
FIN:9240 International Finance2-3 s.h.
Introduction to structure and functioning of global financial markets; currency market, international equity markets; use of derivatives in currency risk management for corporate and investment needs; corporate investment decisions in an international context.
FIN:9250 Applied Securities Analysis - Henry Fund I3 s.h.
Manage Henry Fund portfolio, learn legal environment in which the fund operates, analyze potential investments, implement controls to monitor the fund's performance; decisions and investment recommendations made by students; each student analyzes an economic sector and geographic region (i.e., utilities analyst and specialist in South East Asia); while the fund cannot currently invest directly in foreign listed stocks, it holds U.S. listed stocks with significant overseas interests and students are able to invest in a number of ADRs. Prerequisites: MBA:8180.
FIN:9260 Applied Securities Analysis - Henry Fund II3 s.h.
FIN:9270 Security Analysis3 s.h.
Valuation of financial securities (primarily equities) using discounted cash flow model; industry, regulatory analysis; financial statement analysis; active portfolio management; value-based management techniques; valuation of firms outside the United States. Prerequisites: MBA:8180.
FIN:9280 Structured Finance-Securitization3 s.h.
Design of debt, equity, and hybrid financing techniques to resolve issuer and investor problems that conventional methods cannot address; why and when corporations and financial institutions issue structured securities; how securities are designed and priced; how securities meet investors’ needs; securitized assets, mortgages, asset-backed securities, collateralized debt obligations, credit risk, valuation, cost of capital; legal, tax, and regulatory issues; design and implementation of structured-financed products. Prerequisites: MBA:8180.
FIN:9290 Alternative Investments and Portfolio Strategies2-3 s.h.
Continuation of FIN:9200; alternative investments, including hedge funds, private equity funds, and venture capital vehicles; purpose of alternative investments, including the risk/return profile of alternatives and correlations with traditional asset classes; specific hedge fund styles, strategies, risk profiles; portfolio strategy topics, including diversification benefits, management of downside risk, international diversification, behavioral finance, performance measures, and performance attribution analysis. Prerequisites: FIN:9200 and MBA:8180.
FIN:9300 Corporate Investment and Financing Decisions2-3 s.h.
Underpinnings and optimization of corporations’ investment and financing decisions; firm-wide and project-specific cost of capital, optimal capital structure decisions; in-depth capital budgeting methods, including real options techniques; corporate investment module of the class includes simulation analysis using Crystal Ball; cost of capital, valuation techniques, advanced capital budgeting, capital structure and dividend policy, option pricing models applied to corporate finance. Prerequisites: MBA:8180.
FIN:9310 Corporate Financial Strategy2-3 s.h.
Major strategic decisions within the corporate form; risk management, including why firms engage in it, their methods for doing so, and exercises in the simulation of uncertainty; dividends and repurchases under the payout policy decision; corporate governance topics, including executive compensation, board structure, and institutional monitoring; merger and acquisitions analysis, including regulation, valuation, anti-takeover devices, payment method, and LBOs; divestitures and other restructuring topics, including corporate diversification, spin-offs, carve-outs, private workouts, and Chapter 11. Prerequisites: MBA:8180.
FIN:9350 Wealth Management2-3 s.h.
Rapid growth of the field of wealth management over several decades, driven by general increase in personal wealth and increased responsibility for individuals to manage their own wealth; knowledge and tools to enter the financial services industry; financial planning industry, client characteristics, tax shield structures, insurance, asset allocation plans, estate planning, behavioral finance. Prerequisites: MBA:8180.
FIN:9390 Putting Finance into Practice3 s.h.
Hands-on practical experience in corporate finance or investments; work in teams on a corporate finance project or an investment project for a corporate or institutional client; partner companies identify financial issues, challenges, and opportunities for students to help solve; students work with the companies and a faculty member to provide an analysis of the situation and proposals of actions to be taken. Prerequisites: MBA:8180.