FINANCE WEB SITE LISTS COURSE RECOMMENDATIONS BY CAREER
Use the Alumni Network to find Kellogg grads:
160 at Merrill Lynch
118 at Morgan Stanley
94 at Lehman Brothers
73 at Citigroup
63 at Goldman, Sachs & Co.
59 at JP Morgan Chase
45 at HSBC
38 at Deutsche Bank
Finance: Our Market Share at Kellogg
19% of Graduates last year took jobs in finance
26% of Interns last year took jobs in finance
Finance is one of the most popular majors at Kellogg (about tied with marketing and management and strategy).
And, we’re growing!
Finance @ Kellogg
Finance I (FINC430)
Which projects to pick?
Optimal investment decisions by firms
What cash flows does the project generate?
How to adjust for timing and uncertainty of cash flows?
Also a lot of useful techniques applicable to personal finance
We deal first with time...
basic discounting techniques, application to stock and bond valuation
capital budgeting under certainty
...then with uncertainty:
asset pricing models
capital budgeting under uncertainty
Analytical Finance Major
Both majors build on knowledge from FINC 430 (FIN I) and FINC 441 (FIN II)
Finance II (FINC 441) The role of the financial manager Fin I: Valuations and investment decisions Fin II: Dividend decisions Fin II: Financing decisions Fin II: Risk Management and Hedging Return rate should be appropriate Cash flows appropriately computed How much? What form? Identify costs and benefits of each financing instrument Choose the optimal mix Identify which risks should be hedged Find the appropriate instruments
Options for First Years
Option 1: Take Required Classes
Finance I and Finance II
or Finance I/II (Turbo) (combines Fin I and Fin II in one class)
Waive Finance I. Take Finance II.
Waive Finance I and Finance II
Finance I & Finance II (or FIN 440 (Turbo))
One capital market course from list “F”
2 additional courses
Analytical Finance Major
Finance I & Finance II (or FIN 440 (Turbo))
3 courses from List “A”
Derivative Markets I
Derivative Markets I F (A)
Derivative Markets II F A
Investments F A
Fixed Income Securities F A
International Finance F
Money Markets & the Fed F
Financial Decisions A
Fin. Strategy & Taxes A
Venture Capital and Private Equity Investing
Mergers and Acquisitions
Case Studies in Venture Investment and Management
NOTE 1:You can target your courses to your career plans NOTE 2: It is not all math! Many courses use cases and analytical frameworks.
Practicum in Analytical Finance FINC-925
The focus of the course this year will be “Value Investing.”
First half: (a) formal lectures, (b) in class valuation discussions, (c) presentations by leading value investors.
Second half: Students will (i) design strategies for efficiently searching for value investing strategies, and (ii) identify an interesting value investing opportunity, in groups.
The course uses large data bases of returns data. You will learn to use STATA to analyze strategies.
Each group will make a final presentation on (i) and (ii). A couple of leading value investors to be present during the final presentation.
Focus on securities industry, Wall Street, LBO funds and hedge funds, various functions of I-banking
Sarbanes Oxley and the regulatory environment, exchanges
M&A strategies, valuation and defense
Corporate financing: IPOs, SEOs, debt and convertibles
Cases in Venture Investment and Management (Hochberg, Winter 2006)
Focus on evaluating early stage business opportunities and assessing VC investments
Learn how to make decisions in uncertain environments
Based on a series of cases
Will revolve around in-class case analysis with the venture capitalists and entrepreneurs involved in the cases
5/5 ratings when taught at Cornell
More Information: Finance Department Web Page http://www.kellogg.northwestern.edu/finance/index.htm
Course recommendations by career
Course offerings, descriptions
Some course page links (see also Professors’ own web pages for links)
Financial Decisions FINC-442
Uses case studies to enhance the student's understanding of managerial financial decision making, specifically investment and financing decisions.
Topics include short- and long-term financing, capital structure and dividend decisions, cost of capital, capital budgeting, firm valuation, financial and operational restructuring, and mergers and acquisitions .
The course is sufficiently general so as to be of interest to all students. It provides students with the opportunity to apply the concepts and theories developed in other finance courses.
At its most fundamental level, the course attempts to improve problem-solving skills: problem definition, gathering and organizing the relevant information, developing feasible alternative courses of action, evaluating alternative choices, and recommending and defending the best course of action.
Entrepreneurial Finance FINC-446
This course teaches students how to become an entrepreneur by focusing on financial aspects.
Topics include pro forma development and review, business valuation models, cash flow analysis and raising capital from private investors, venture capitalists and banks.
The course is taught using the case method process ("real life" case studies). Periodically, technical notes will be used and guests invited to augment subjects addressed. This is not a quantitative analysis course. Rather, it focuses on marketing, sales, management and strategic planning.
Venture Capital and Private Equity Investing FINC-445
This course teaches students about the venture capital and private equity industry from the primary perspective of the investor.
Topics include the structure of VC funds, the contracts between VCs and their investors, the contracts between VCs and entrepreneurs, valuation of deals, monitoring of investments, and exit strategies such as IPO / M&A
The course is taught using a combination of lectures, class discussions, and the case method process ("real life" case studies). Periodically, technical notes will be used and guests invited to augment subjects addressed. This is not a quantitative analysis course, though frameworks for thinking about valuation are provided.
International Finance INTL-470
Managing an international business or one exposed to global competition requires an understanding of international financial instruments, markets and institutions. This course seeks to provide students with a working knowledge of these issues.
Topics include the nature of foreign exchange risk; the determination of exchange rates and interest rates ; the management of foreign exchange risk with forwards, options and swaps; exchange rate forecasting; the anatomy of currency speculative attacks ; and the dynamics of the balance of payments with a focus on understanding international capital flows, country debt and exchange rate fluctuations.
This course is a comprehensive study of investment theory from the perspective of plan sponsors and portfolio managers.
Emphasis is on optimal portfolio construction and portfolio performance evaluation using modern portfolio theory and asset-pricing models.
Topics include equity valuation , benchmark tracking , transactions costs , term structure of interest rates and bonds, use of derivatives in index fund management and hedge fund strategies.
Money Markets and the Fed FINC-451
This course covers two aspects of money markets : financial institutions , and financial instruments .
In the first half of the course, the linkages between the financial system and the macro-economy are studied including interest rate determination, the role of the Federal Reserve and the conduct of monetary policy.
The second half of the course provides an overview of the instruments of the money market: Federal Funds, Commercial Paper, Treasury Bills, etc. Basic valuation and hedging techniques in short term futures and swaps are also covered.
Derivatives Markets I, FINC-465
This course covers the use and pricing of forwards and futures, swaps and options.
Specific topics include strategies for speculation and risk management , no-arbitrage pricing for forward contracts, the binomial and Black-Scholes option pricing models and applications of pricing models in other contexts.