Finance Minor

Introduction to the double-entry system of debits and credits, journal entries and general ledger accounts, steps leading up to financial statement preparation and format of financial statements. Also included are studies of merchandising companies and determination of inventory balances and cost of goods sold, and an introduction to the accounting treatment of various assets and liabilities. US accounting standards (GAAP) are contrasted with international standards (IFRS).

An introductory study of the basic principles, instruments, and institutions in the financial marketplace. Topics include the concept of money; the Federal Reserve and the banking system; the provision and management of funds for both the short and long terms; the basic financial instruments; financial characteristics of the firm, including basic balance sheet analysis; the role of the stock and bond markets; interest rates and present value analysis; personal finance issues. Corequisite: EBEN 101 or EBEN 102.

Characteristics and investment strategies related to stocks, bonds, and options. Sources of return and risk are explored. The foundations of financial research are developed with regard to information sources, valuation techniques, computation of return and risk and their relationship. SEC regulations; methods of performance evaluation. Prerequisite: EBFN 101.

Methods of capital budgeting and corporate financial decision-making; valuation techniques, market efficiency, capital structure, dividend policy, Betas, cost of capital, portfolio analysis and the Miller Modigliani principle are incorporated into the analysis; financial analysis under conditions of certainty and uncertainty. Prerequisite: EBFN 101.

An introductory course covering issues relating to the economy as a whole. Topics covered include, but are not limited to, the study of national income and the Gross Domestic Product (GDP), national income determination, investment, consumption and consumption theories; classical economic theories, Keynesianism, monetarism, rational expectations, supply-side economics; the business cycle, inflation, unemployment; money and the money supply, the banking system, the federal reserve system, monetary and fiscal policy, budget deficits and the national debt.

An introductory course covering issues relating to individual economic units: namely, the individual consumer, the individual firm, the individual factors of production—land, labor, and capital. Topics covered include, but are not limited to, price theory, price determination through equilibrium, supply and demand, analysis of consumer demand, utility theory and marginal utility, consumer equilibrium, indifference curve analysis, analysis of supply, theory of production, pricing in perfectly and imperfectly competitive markets, types of imperfect competition, anti-trust laws in the U.S., and distribution of income.

Money and its equivalents, interest rates, the role of the Federal Reserve and the banking system. In particular, the workings of the money market and its instruments, including treasury bills and commercial paper, financial institutions, and monetary policy and its effects on the national and global economies. Prerequisites: EBEN 101 and 102.

The influence of the quantity of money on prices, growth and employment and its relation to the central banking system’s control of the money supply. Prerequisites: EBEN 101 and 102.

Comprehensive discussion of the international financial environment. The market forces whose interplay determines exchange rates and governmental policies are covered. Parity theorems and description of the international equity and credit markets and their dynamics are presented. The forecasting of price changes and returns on equities and bonds in the international setting are covered. Prerequisite: EBFN 101.

An in-depth study of modern trade theory and monetary relations. Topics include but are not limited to globalization, absolute and comparative advantage, theory of reciprocal demand, offer curves, factor endowment theory and other theories of trade, Leontief paradox, tariffs and their effects, balance of payments issues, foreign exchange rate determinants, spot and futures markets, arbitrage, purchasing power parity, balance of payments adjustments, exchange rate adjustments, and its effect on the balance of payments. Prerequisites: EBEN 101, EBEN 102 and EBFN 101.

This course looks in detail at derivatives used to conduct commodity trade across international markets. Such derivatives include options, futures, forwards, swaps, and spots. This course also focuses on risk management, and uses mathematical models to set conditions for minimum risk and to predict relevant variables important to such trade. Prerequisite: EBFN 210.

The theoretical foundations, institutional details, and practical applications of options trading: various pricing models and their development; in-depth examination of the use of options as speculative, hedging, investment, and arbitrage tools; the role of options with respect to the proper functioning of the modern market economy. The central focus is on stock options. Prerequisite: EBFN 210.