2021-22 Catalog

Finance

Finance is an increasingly complex and important component of the competitive global economy.  Consequently, there are myriad career opportunities within financial services at corporations, investment firms, and financial institutions worldwide.  To complete the finance major, students must take seven courses comprised of both required and elective components for a total of at least 21 credits.  Required courses provide a solid foundation, while electives enable students to tailor their studies to specific career goals.  

Students are also encouraged to engage in discipline-specific extracurricular activities as a complement to their formal academic studies.  This may include student managed investment funds, clubs/societies, visiting speakers, field trips, conferences/symposia, internships, and networking events with alumni and industry professionals.  Lehigh enjoys a relative advantage in this regard given an alumni base that is well respected in all areas of finance and the University’s proximity to major financial institutions and markets. To expand their knowledge dimensions, majors can also undertake minors that are related to finance such as the Real Estate Minor or the FinTech Minor 

The finance major offered by the Perella Department of Finance requires at least 21 credit hours beyond the College of Business core.  All candidates must successfully complete foundational courses in Investments and Corporate Finance along with 5 elective courses selected from a list of approved offerings.  Three electives must be finance courses (FIN prefix), while the remaining two electives may be selected from a wider range of courses in finance, accounting, economics, mathematics, and real estate as outlined below.  All courses must be at least 3 credits.

2-Course Foundation Requirement 6
Investments
Corporate Financial Policy
5-Course Elective Requirement (Choose 5 courses from the following, at least 3 of which must have a FIN prefix)15-17
Security Analysis and Portfolio Management
Financial Markets and Institutions
Global Finance
Derivatives and Management of Risk
Advanced Topics – Financial Management (Various Topics can be offered under this course number. It may be taken more than once if different topics are selected.)
Real Estate Finance
Advanced Topics--Investments (Various topics can be offered under this course listing. Various Topics can be offered under this course number. It may be taken more than once if different topics are selected.)
.
ACCT XXX
(Any 300 level Accounting course of at least 3 credits [except ACCT 371 and 372].)
ECO XXX
(Any 200 level (or higher) Economics course of at least 3 credits [except ECO 201, 259, 273, 274, 300, 301, 362, 371, and 389].)
REAL XXX
(Any 300 level Real Estate course of at least 3 credits [Can only count 1 REAL course if also taking FIN 336].)
.
Optimization Models and Applications
Stochastic Models and Applications
.
Linear Methods
Probability and Statistics
Applied Linear Algebra
Introduction to the Theory of Probability
Random Processes and Applications
Total Credits21-23

Undergraduate Courses

For Advanced Undergraduates and Graduate Students

Courses numbered 200 and above in the College of Business are open to sophomores only on petition.

Graduate Courses

Course descriptions for the College of Business graduate courses can be found under the heading of Business Graduate Courses.

Courses

FIN 125 Introduction to Finance 3 Credits

An introductory finance course stressing the links between corporate finance and investments. Major topic areas will include financial statement analysis, time value of money, risk and return valuation of stocks and bonds, capital budgeting, and cost of capital.
Prerequisites: ACCT 151 and (ECO 145 or ECO 045 or MATH 231 or ISE 111 or IE 111 or SR 111) and (MATH 021 or MATH 031 or MATH 076 or MATH 081)

FIN 273 Finance Internship I 1-3 Credits

Based on a student’s work experience, a sponsoring faculty member shall direct readings, projects, and other assignments—including a “capstone report.” It should be noted that the work experience (at least 80 hours), by itself, is not the basis for academic credit. The faculty directed activity must be provided concurrent with the work. Course registration and related arrangements must be made in advance of the work engagement. This course must be taken Pass/Fail and cannot be used to satisfy finance major requirements. Declaration of a finance major. Consent of department required.
Prerequisites: (ECO 129 or ECO 029 and ACCT 151) and (ECO 145 or ECO 045 or MATH 231 or ISE 111 or IE 111 or SR 111) and (MATH 021 or MATH 031 or MATH 076 or MATH 097 or MATH 081)

FIN 300 Apprentice Teaching 1-3 Credits

Repeat Status: Course may be repeated.

FIN 323 Investments 3 Credits

The nature of risk and the form of returns on financial assets from the viewpoint of various constituents. Investor objectives, attitudes, and constraints are considered within the risk-return matrix within the context of valuation.
Prerequisites: FIN 125

FIN 324 Security Analysis and Portfolio Management 3 Credits

The course will expose students to the concept of Corporate Valuation via Equity and Debt instruments including examining transactions and events leading to market crashes. Forecasting models will be used. Coverage includes: portfolio management concepts, market factors, technical analysis, timing, and screening of securities. Online version is designed for maximum flexibility (access to instructor, optional group work, recorded video and live sessions) enabling students to pursue professional interests.
Prerequisites: FIN 323 and FIN 328

FIN 328 Corporate Financial Policy 3 Credits

The study of management issues related to capital budgeting, working capital, leasing, mergers, and financing.
Prerequisites: FIN 125

FIN 330 Financial Markets and Institutions 3 Credits

Functions and portfolios of financial intermediaries. Sectional demand and supply of funds, nature and role of interest rates, term structure and forecasting, impact of inflation and regulation on financial intermediaries and markets, and current developments in the financial system. Management of assets and liabilities within the U.S. financial institution’s legal and economic constraints.
Prerequisites: (FIN 323 and FIN 328)

FIN 333 Global Finance 3 Credits

Issues that underlie the investment, financing, and dividend decisions of multinational firms from both the buyer’s and seller’s viewpoints. Current transactions in foreign currencies, direct and portfolio investment and associated risk management when dealing in foreign countries.
Prerequisites: (FIN 328 and FIN 323)

FIN 334 Derivatives and Management of Risk 3 Credits

Theoretical and practical aspects of various instruments and markets that involve financial derivative instruments. Emphasis on the management of risk for corporate managers and portfolio managers.
Prerequisites: (FIN 323 and FIN 328)

FIN 335 Advanced Topics – Financial Management 3 Credits

Advanced topics relating to specific areas of corporate finance such as: bond refunding, asset valuation and capital budgeting including the role of uncertainty, imprecise forecasts, risk preferences, inflation, market conditions, and the global marketplace; working capital management, leasing, mergers, and financing. The course content may vary between instructors and over time, therefore, the course descriptor is subject to change each time the is offered.
Repeat Status: Course may be repeated.
Prerequisites: (FIN 328 and FIN 323)

FIN 336 Real Estate Finance 3 Credits

An advanced survey of modern residential and commercial real estate financing techniques from the perspective of the borrower and the lender. Topics include: the principles of financing decisions; financing methods and techniques, institutional sources of funds for real estate, and real estate financing decision-making. The course includes lectures, demonstrations, spreadsheet software exercises, and guest speakers.
Prerequisites: (FIN 328 and FIN 323)

FIN 371 Directed Readings 1-3 Credits

Readings in various fields of finance designed for the student with a special interest in some field of finance not covered in scheduled courses. Consent of sponsoring instructor required.
Repeat Status: Course may be repeated.

FIN 372 Special Topics 1-3 Credits

Special problems and issues in finance for which no regularly scheduled course work exists. When offered as group study, coverage varies according to interests of instructor and students. Consent of sponsoring instructor required.
Repeat Status: Course may be repeated.

FIN 373 Finance Internship II 1-3 Credits

Based on a student’s work experience, a sponsoring faculty member shall direct readings, projects, and other assignments—including a “capstone report.” It should be noted that the work experience (at least 80 hours), by itself, is not the basis for academic credit. The faculty directed activity must be provided concurrent with the work.Course content and work experience should have added rigor from Finance Internship I due to the satisfactory completion of the finance core (FIN 323 and FIN 328).Course registration and related arrangements must be made in advance of the work engagement. This course must be taken Pass/Fail and cannot be used to satisfy finance major requirements. Declaration of a finance major. Consent of department required.
Prerequisites: (FIN 323 and FIN 328)

FIN 374 Portfolio Management Practicum 1-3 Credits

Readings, projects and papers designed to complement the leadership and analytical activities associated with the management of the Student Investment Club or Thompson portfolios and similar activities. Consent of instructor required.
Repeat Status: Course may be repeated.
Prerequisites: FIN 323

FIN 377 Advanced Topics--Investments 3 Credits

Advanced topics to specific areas of Investments such as: valuation/security analysis; portfolio/risk management; fixed income securities; mutual funds; hedge funds; microstructure; and trading.
Repeat Status: Course may be repeated.
Prerequisites: FIN 323 and FIN 328

FIN 382 Guest Speaker Seminar Series 1 Credit

This course is designed to help prepare students for ‘real’ world problems by exposing them to a variety of career opportunitites. The purpose of this seminar is to give students the opportunity to network with successful professionals in the Financial Services industry, connecting students and practitioners across places and generations to build community around shared work-as-service interests. For future professionals, this seminar advances co-curricular programming to the “pro-curricular” level – linking classroom study of finance to the dynamic world of the practicing financial professionals.
Repeat Status: Course may be repeated.

FIN 388 (BIS 388) FinTech Capstone 3 Credits

This course combines experiential learning via a semester long hands-on project with a series of lectures on relevant topics. Students will learn how to apply the information technologies and financial concepts they learned in the other courses to issues in the creation, distribution, servicing, or operations of financial products and services. These issues may include cybersecurity, payment processing, algorithmic trading, credit scoring, blockchain, cryptocurrency, artificial intelligence, machine learning, peer-to-peer lending, online banking, and mobile banking.
Prerequisites: (CSE 012 or CSE 017) and BIS 352 and (BIS 348 or CSE 347 or ISE 364 or ISE 365) and (BIS 324 or CSE 241 or ISE 224) and FIN 330

FIN 389 Honors Project 1-8 Credits

Repeat Status: Course may be repeated.

FIN 418 Principles of Corporate Finance and Investments 3 Credits

This course provides students with a basic foundational knowledge of finance principles, working knowledge of various aspects of corporate finance, and the principles of investments. Short-term financial decisions will be discussed. Long-term capital investment will be explored starting with the basics of time value of money and capital investment techniques. Topics include the determination of the appropriate investment discount rate, the organization’s cost of capital and hurdle rates, the risk-reward tradeoff, and specific financial instruments.

Professors. Paul Brockman, PhD (Louisiana State University); Kathleen W. Hanley, PhD (University of Florida); Richard J. Kish, PhD (University of Florida); George A. Nation, III, JD (Villanova University); Nandkumar Nayar, PhD (University of Iowa); Georgette C. Phillips, JD (Harvard Law School); Xuemin Yan, PhD (University of Iowa)

Associate Professors. Steven McKay Price, PhD (Florida State University); Jesus M. Salas, PhD (University of Oklahoma); Ke Yang, PhD (University of Iowa)

Assistant Professors. Donald E Bowen, PhD (University of Maryland); Ke Shen, PhD (University of Iowa); Qianqian Yu, PhD (Boston College); Haibei Zhao, PhD (Georgia State University)

Professors Of Practice. Chen Cai, PhD (Georgia State University); Loren Kenneth Keim, Jr., MBA (Lehigh University); Olena Nikolsko-Rzhevska, PhD (University of Memphis); Samuel C. Weaver, PhD (Lehigh University); Patrick J. Zoro, MBA (St Johns University Queens)

Emeriti. Carl R. Beidleman, PhD (University of Pennsylvania); Stephen G. Buell, PhD (Lehigh University); Stephen F. Thode, DBA (Indiana University Bloomington)

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