Finance and Economics

Finance www.millikin.edu/finance

Finance Faculty

Full-Time: Christopher Marquette, Michael Osei

Major in Finance

Students who complete a degree in Finance will be able to analyze financial statements, calculate the value of stocks, bonds, options and futures, apply various capital budgeting investment methods, quantify interest rate risk of bond portfolios and evaluate factors affecting interest rates. Finance students are strongly encouraged to pursue the Chartered Financial Analyst (CFA) professional designation and/or one of the many designations in the insurance and banking industries.

Performance Learning

Performance Learning initiatives include interning for corporations, financial institutions or investment firms and hands-on management of the Tabor Investment Portfolio for at least one semester each.

Career Opportunities

Finance graduates obtain employment as financial analysts, investment managers, commercial lending officers and insurance underwriters.

Learning Goals for the Finance Major

• Evaluate and quantify risk and utilize it in investment decisions. • Gather and compile data and compute measures of profitability. • Estimate the value of corporate investment projects and securities. • Explain the function of central banks and characterize the features of money and capital markets.

Requirements for the Major

In addition to the business core courses, students will be required to complete 28 credits of upper-level Finance-related courses.

Required Courses (22 credits):

MA140. Calculus I (4) BU260. Business Law (3) FI301. Markets and Institutions (3) FI352. Investments (3) FI365. Corporate Finance (3) FI452. Security Analysis & Portfolio Management (3) FI471. Finance Internship (3)

Elective Courses (choose 6 credits):

FI314. Insurance and Risk Management (3) FI354. International Trade and Finance (3) FI410. Bank Management (3) FI452. Security Analysis & Portfolio Management (3) (optional 2nd semester) MA324. Theory of Interest (3) MA434. Mathematical Finance (3)

Finance Minor

The minor in Finance is available to all students at Millikin University including those majoring in the Tabor School of Business. Students who complete a minor in Finance will be able to analyze financial statements, calculate the value of stocks, bonds, options and futures, apply various capital budgeting investment methods, quantify interest rate risk of bond portfolios and evaluate factors affecting interest rates. The minor requires 21 semester hours as follows:

Learning Goals for the Finance Minor

• Gather, organize, synthesize, evaluate, interpret, and communicate financial information in both oral and written form. • Use quantitative and critical reasoning related to modern finance theory and practices to evaluate and manage equity investments.

Requirements for the Minor

Students in the Finance Minor will be required to complete 21 credits of Finance and Business courses.

Required Courses (21 credits):

EC100. Macroeconomics (3) or EC120, Principles of Economics (3) for non-Tabor students AC230. Introduction to Financial Statements (3) AC240. Principles of Managerial Accounting (3) FI340. Introduction to Financial Management (3) FI365. Corporate Finance (3) FI352. Investments (3) FI452. Security Analysis and Portfolio Management (3)

Finance Courses (FI) (Credits)

FI300. Personal Finance (1)

Personal Finance is designed to provide students with the basic knowledge of how to successfully handle their personal finances at all stages of their life. This course covers financial planning, managing money and credit, insurance issues, investing topics, retirement and estate planning and dealing with financial life events. Open to all majors.

FI301. Markets and Institutions (3)

This course covers the functions of financial markets and the basic management of financial institutions. Institutions studied include banks, securities firms, and insurance companies. Concepts include risk management, interest rates, and Federal Reserve policy.

FI314. Insurance and Risk Management (3)

This course introduces the basic concepts of insurance and risk management. It covers the definition and measurement of risk, methods of risk management and pricing mechanisms. Topics include identification and insurability of risk, property and casualty insurance, life insurance, retirement and worker’s compensation plans and regulation of the insurance industry.

FI340. Introduction to Financial Management (3)

An introduction to the terms and concepts involved in financial management. This is a managerial decision-oriented course involving team and individual processes. Financial analysis, forecasting and planning, break-even analysis, sources of financing, analysis of capital project opportunities as well as short-term asset management, cash budgeting and credit policy, valuation.

FI352. Investments (3)

This course is the basic finance course regarding investment management. Concepts include return, risk and diversification as they apply to money market, capital market and derivative securities.

FI354. International Trade and Finance (3)

Principles of international trade, exchange rates and balance of payments adjustments. Methods of financing international trade. The international financial institutions that aid the flow of funds. Working capital considerations and capital budgeting problems of the multinational corporation.

FI365. Corporate Finance (3)

Analysis of financial problems of business enterprises and formulation of financial policies with emphasis on concepts such as Economic Value Added and Market Value Added. Short-term investment and financing decisions. Financial Statement Analysis. Development of long-term investment theory and financing decision making with emphasis on the valuation process. Financing choices and cost of capital, capital budgeting and dividend policy.

FI410. Bank Management (3)

This course is both a practical and a concept-oriented treatment of the workings of today’s banking system. It reviews fundamentals of financial markets and proceeds with a detailed analysis of the central banking system, debt and mortgage capital markets, financial institutions and the management of the different types of risk that these institutions face.

FI452. Security Analysis and Portfolio Management (3)

Advanced evaluation of securities, determinants of their value, methods of combining securities in the construction of investment portfolios. Portfolio theory strategies. Extensive project analysis of an industry and company stock.

FI471, 472. Finance Internship (1-3)

A cooperative course between the University and selected businesses to develop further professional training of finance majors. Combination of work experience and written reports. Pre-requisites: consent of internship coordinator.

Economics Courses (EC) (Credits)

EC100. Principles of Macroeconomics (3)

Basic economic concepts and their application to problems of broad public policy, such as inflation, unemployment and international economic relations. The special role of the government in the economy through taxation, expenditures, monetary policy and regulation. Economic growth, development and different economic systems. A general education course.

EC110. Principles of Microeconomics (3)

Analysis of demand theory, costs, supply and prices in various market structures, including resource markets. Nature of market failures, externalities, and public goods.

EC120. Principles of Economics (3)

Designed to give students an introduction to the core concepts of economics with an emphasis on real-world examples and current events. Learning to analyze problems and make decisions is a major theme throughout the course. The course will look at how markets work and don’t work, how businesses and consumers make decisions, and issues such as inflation and unemployment with their possible causes and cures. The roles of the government and the Federal Reserve in the economy will be examined as well. What students learn in this course will help them to make more informed decisions in their roles as voters, consumers, workers and citizens. Cannot be taken for credit in any Tabor School major.