Strategic Financial Planning and Wealth Management (FINC-957-0) This course is a hands-on, problem-solving-based introduction to the questions, concepts, analytical tools, and financial instruments useful for financial planning. We teach financial planning from the perspective of the life-cycle model of consumption, where individuals wish to smooth consumption over their lifetimes, while at the same time achieve a set of financial goals. From this perspective, we address the most pressing questions any financial plan will face. The first question is how do individual preferences impact the optimal level of consumption and savings over the lifecycle. This leads naturally to an understanding of "rules-of-thumb" regarding any individual's progress towards successful implementation of a financial plan and in particular, whether an individual's savings are consistent with the individual's goals. The second question is whether an individual has identified, measured, and managed the risks faced by all financial plans. This provides guidance on what risks one should bear and which risks should be hedged or insured against. The third question is whether the wealth one amasses will be sufficient to accomplish one's long-term goals. We address this in an environment where not only are investment rates of return random, but so too are the lengths of realized planning horizons (lifetimes). The fourth question is how particular financial instruments (e.g. annuities, insurance, reverse mortgages) can be used to address the uncertainty surrounding planning horizons. Finally, we identify the common "pitfalls" observed in financial planning as well as the practical challenges to getting help with achieving one's financial goals. The course is designed for students with or without a financial industry background, who may be interested in pursuing careers in wealth management, or who simply wish to gain appreciation for the real-world practical difficulties one faces in accomplishing one's lifetime financial goals.
Applied Real Estate Finance and Investments (FINC-455-0) This course uses case studies to enhance student understanding of investment and financing decisions in the commercial real estate industry. Building on the material covered from the prerequisite course, FINC-454, this course emphasizes topics particularly relevant to the professional property investor. The course begins by exploring how to value land held for commercial development, how to make investment decisions regarding ground-up development, and the circumstances that lead the public sector to support private real estate development. Next, the course explores the role of financial markets to provide financing through securitization of both commercial and residential mortgages. The course concludes with examinations of the corporate use of real estate, performance attribution, and the allocation and investment decisions made by institutional investors into real estate assets. Class is a mixture of lectures, case discussions, and in-class exercises. There is no final exam.
Real Estate Finance and Investments (FINC-454-0) This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investing and financing decisions regarding income-producing property. We begin the course by considering how to estimate the cash flows and discount rates for investment property, allowing us to estimate a property's fundamental value. We next discuss how investment property is generally financed by a close examination of real estate debt markets as well as real estate private equity. We consider the taxation of property as well as how investors should think about the risks to investing in property. We conclude with important considerations for investors when their investment thesis does not come to fruition. We will study property investment using the tools and framework of modern corporate finance and investments, while focusing on the institutional features unique to the real estate industry. As such, the course is designed for students with or without a real estate background, who may be interested in learning about investing in property, either personally or professionally. Students complete individual homework, group cases, and a midterm and final exam.
Finance I (FINC-430-0) Finance 1 answers managers' and investors' most fundamental finance question: how should a project or an asset be valued? Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the discounted cash flow and multiples methods to value projects or assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.
Prerequisite: Business Analytics I (DECS-430-5)
Corequisite/Prerequisite: Accounting for Decision Making (ACCT-430) and Business Analytics II (DECS 431-0)
Real Estate Finance & Investment (BUS_INST-331-0) An introduction to the fundamental concepts, principles, analytical methods and tools used for making investing and financing decisions regarding income producing properties. Topics covered include leases, cash flow-based real estate evaluation, property financing (debt), real estate private equity, and property taxation. Prerequisites: ECON 201-0, ECON 202-0, STAT 210-0 or equivalent, BUS_INST 304-0 or equivalent.
