BFIN - Business Finance

BFIN 205 Personal Finance: 3 Credits (3 Lec)

PREREQUISITE: Completion of University Core mathematics course. () Hasn't been offered recently. Financial concepts as they apply to daily life. Basics of consumer credit, personal investment, insurance, and personal financial planning. This course may not substitute for any required business course

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Understand the importance of developing and organizing financial records as a prerequisite to personal financial planning.\\n
Learn how and why to set up a personal budget, construct financial statements, and to understand the meaning and importance of financial planning.
Gain an understanding of the various types of financial institutions and their interrelationships with each other.
Acquire a basic understanding of the purposes, techniques, and problems of obtaining credit.
Gain an understanding of the factors involved in federal income taxation, home buying, health, life, automobile and homeowners' insurance, and retirement and estate planning.
Explore the securities market (stocks, bonds, and mutual funds) and how they operate.

BFIN 290R Undergraduate Research: 1-6 Credits (1-6 Other)

() Offered as needed based on student demand. Directed undergraduate research/creative activity which may culminate in a written work or other creative projects. Course will address responsible conduct of research. May be repeated.
Repeatable up to 99 credits.

BFIN 291 Special Topics: 1-4 Credits (1-4 Lec)

PREREQUISITE: None required but some may be determined necessary by each offering. Offered as needed based on student demand. Courses not required in any curriculum for which there is a particular one-time need, or given on a trial basis to determine acceptability and demand before requesting a regular course number
Repeatable up to 12 credits.

BFIN 292 Independent Study: 1-3 Credits (1-3 Other)

PREREQUISITE: Consent of instructor and approval of Associate Dean. (F, Sp, Su) Directed research and study on an individual basis. Not to be used as a substitute for a required course
Repeatable up to 6 credits.

BFIN 317 American Financial Institutions: 3 Credits (3 Other)

PREREQUISITE: Sophomore standing; consent of instructor. (F) Through this course students will boost their knowledge of, and interest in, the field of finance, will learn about and visit some of America's iconic financial institutions, and will learn about their own preferences for working in their chosen field of study. Non-majors will be considered if space is available. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Attend all scheduled meetings with New York financial institutions.
Apply for internships/jobs with at least five New York-area financial institutions.
Explain the historical performance of the financial markets.
Explain how demographic changes may impact the financial markets.
Explain the impact of inflation and taxation on investment returns.
Explain the differences between the following finance functions: investment banking, trading, portfolio management, wealth management, and private equity, and discuss whether employment in each of these functions fits with your career plans.
Conduct pre-trip research on the institutions we plan to visit and the people we plan to meet.
Write papers reflecting upon your institutional visits and career plans.

BFIN 322 Business Finance: 3 Credits (3 Lec)

PREREQUISITE: ACTG 201, ECNS 204IS or ECNS 251IS, and STAT 216Q. (F, Sp, Su) Previously taken BMGT 240IS preferred. Study of the principles of finance with emphasis on the application and integration of financial concepts in decision making

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Understand the concepts of the present and future value of money
Measure risk, return, and diversification benefits
Perform basic financial accounting analysis of a firm, decipher a firm’s financial operations, financial structure, and conduct securities valuation
Follow and analyze information presented in the financial media
Solve real financial problems and make individual and business financial decisions

BFIN 357 Financial Markets & Institutions: 3 Credits (3 Lec)

PREREQUISITE: ACTG 201, ECNS 204IS or ECNS 251IS, and STAT 216Q. (F, Sp) Previously taken BMGT 240IS preferred. Develops a sound understanding of why financial markets and institutions exist, their roles in a capitalistic society, and how financial risk is managed most effectively. Focuses on applied analysis of financial institution risk, market operation, and products. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Describe how interest rates are determined and the various theories of the term structure of interest rates.
Explain interest rate risk and compute duration as a measure of that risk.
Explain the characteristics of bonds, mortgages, mortgage-backed securities, and the markets on which they trade.
Explain the structure and operations of the Federal Reserve Bank, why it is so important to the American economy, and how it establishes the federal funds rate.
Describe the banking system and be able to measure a bank’s performance.
Describe the primary risks in banking and perform a GAP analysis.
Explain how risk can be managed through the use of derivatives.

BFIN 420R Investments: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322 & BFIN 357, or (ECNS 313, EIND 373, & ECNS 345/AGBE 345 or EGEN 325). (F, Sp) This course explores concepts and evidence for investment portfolio management. Topics include risk and return, asset allocation, diversification, portfolio optimization, asset pricing models, performance evaluation, and portfolio management strategies. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Analyze and evaluate financial data. Recommend and justify decisions, including decisions arising from ambiguous or unfamiliar information, or arising from ambiguous or incomplete directions. These analyses will require the critical analysis of both quantitative and qualitative data. Prepare reports documenting the analysis and recommendations.
Demonstrate modern portfolio theory.
Characterize asset valuation models. Demonstrate the CAPM. Outline the Fama-French 3- and 5-Factor Models. Outline the Arbitrage Pricing Theory
Demonstrate fixed-income security analysis for the development and monitoring of fixed-income portfolios. This analysis will include the term structure of interest rates, duration, convexity and portfolio performance measures.
Demonstrate equity security analysis for the development and monitoring of equity portfolios. This analysis will include fundamental analysis, technical analysis, industry analysis, sector analysis, market analysis, and focus on free-cash flow models.
Characterize the purpose and process for portfolio performance evaluation and benchmarking, including basic application of analysis tools. Demonstrate basic portfolio performance measures and portfolio performance attribution analysis techniques.
Identify situations where the theories of financial management can be applied to developing decisions. Recommend and justify decisions, including decisions arising from ambiguous or unfamiliar information.
Present effectively and compellingly through both oral and written presentation your analysis, recommendations, and justification.
Demonstrate the ability to identify an appropriate research topic, explain hypotheses, outline a plan for empirically examining the hypotheses, and prepare a scholarly paper clearly identifying: topic, appropriate literature, hypotheses, data, empirical methods, results and conclusions.
Explain why research and creative activity is critical to the mission of a university and necessary for a vital society. Explain why the responsible conduct of research is essential to this critical mission.

BFIN 421 Real Estate Investment Analysis: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322, or (EIND 373, & ECNS 345/AGBE 345 or EGEN 325). (F, Sp) To prepare students for careers in real estate, construction lending, real estate valuation, acquisition and asset management, and market and investment analysis. Much of the course material is also applicable to personal financial planning. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Demonstrate knowledge of the various legal and contractual issues central to the real estate industry.
Identify, evaluate, and then choose the best option among various alternatives for financing residential properties. Describe and evaluate the characteristics of fixed-rate, ARM, and other mortgage types. Employ both a financial calculator and Excel in performing calculations of mortgage balances, rates of return (or costs), costs of incremental financing, refinance analysis, etc.
Demonstrate proficiency in using Excel to construct interactive amortization schedules for fixed-rate and ARM mortgage products.
Apply fundamental capital budgeting techniques in order to evaluate real-estate properties as investment opportunities.
Explain the characteristics of various types of commercial investment properties, and describe in detail the lease features specific to each type. Describe and apply industry accepted methods for estimating property market values.
Apply incremental cash-flow analysis in evaluating real estate investment opportunities.
Describe the loan underwriting and closing processes, and define typical underwriting guidelines. Assess proposed owner-occupied residential martgage financing arrangements using borrower credit, income, asset, employment, and DTI ratio analysis. Analyze proposed investment property financing arrangements using operating cash flows and debt service coverage ratios.
Explain the mechanics of the secondary mortgage market and describe the roles of FNMA, FHLM, and GNMA in that market. Describe the real estate investment trust (REIT), an investment vehicle of increasing importance.
Employ Excel to generate interactive real estate investment analysis spreadsheets that can be used to evaluate the potential return on investment for proposed real estate transactions. Apply multi-variate regression analysis to local market rent data to determine appropriate market rent for a given property.

BFIN 435 Corporate Finance: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322 & BFIN 357, or (ECNS 313, EIND 373, & ECNS 345/AGBE 345 or EGEN 325). (F, Sp) In-depth extension of financial management topics introduced in BFIN 322. Topics include: risk, valuation, cost of capital, capital budgeting, capital structure, and payout policy. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Measure corporate risk and related it to investor return.
Conduct capital budgeting analysis case studies.
Describe a company’s capital structure and analyze its appropriateness.
Explain some of the major theories of capital structure.
Describe a company’s dividend policy and analyze its appropriateness.
Explain some of the major theories of dividend policy.
Perform valuations on companies using real and/or simulated data.
Perform pro forma financial planning.

BFIN 452 International Finance: 3 Credits (1 Lec, 2 Other)

PREREQUISITE: BFIN 322, or (EIND 373 & ECNS 345 or AGBE 345 or EGEN 325). (On demand) Not currently being offered. Focuses on the risks associated with financial management of a multinational company. Topics include: financial problems of multinational businesses, international financial environments, long-term capital commitments to international ventures, financial techniques for firm operation, and international investing. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Acquire the knowledge of managing a business in globalized world.
Learn the characteristics of multinational corporations (MNCs).
Acquire the ability to interpret the properties of foreign exchange rates and their movement.
Learn the techniques in trading currencies and in doing risk hedging for MNCs.
Acquire the ability to analyze the impact of global economic exposure on MNCs.
Learn the portfolio management skills in international investing.

BFIN 456 Entrepreneurial Finance: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322 or BGEN 210, or (EIND 373 & ECNS 345 or AGBE 345 or EGEN 325). (F) Study of corporate finance issues confronting entrepreneurial firms. Focus is on financial forecasting and assessing financial needs. Students utilize fundamental financial principles to make small-business decisions. Topics include: strategic financing, financing alternatives, financial contracting, venture valuation, real options, and risk-sharing. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Forecast Financial Needs - Use simulation and scenario analysis to analyze strategic financial options available to a firm, identify and communicate the optimal option, and estimate and describe a firm’s financial needs based on the recommended course of action. This includes:\\na) Develop and analyze venture pro-forma financial statements with the primary objective of determining the financial needs for the venture.\\nb) Determine the importance of various inputs (e.g., marketing, finance, competition, production inputs) on the sustainability of the venture.\\n
Identify and Evaluate Real Options – Qualitatively identify real options available with firms or projects, identify the parameters that are important to the valuation of the options, indicate how these options will affect the value of the project or the firm, and use quantitative techniques to provide approximate valuations for these options.
Value the Venture – Explain the difference between the venture valuation models and the standard corporate finance evaluation model from both the investor and entrepreneur’s points of views.
Identify and Evaluate Risk Sharing Opportunities - Explain optimal risk sharing contracts for new ventures, identify the parameters that are critical to these contracts, and outline and communicate recommendations for optimal contracts.
Identify situations where the theories of financial management can be applied to developing decisions. Recommend and justify decisions, including decisions arising from ambiguous or unfamiliar information. Orally present your analysis, recommendations, and justification.

BFIN 458 Commercial Bank Management: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322, or (EIND 373, & ECNS 345/AGBE 345 or EGEN 325). (Fall or Spring depending on staffing ) Management of commercial banks, with emphasis on community banking issues. Course emphasizes measurement and control of key banking risks, methods of credit and collateral analysis, and overview of bank regulatory environment. Course includes issues in contemporary banking. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Analyze the major risks facing commercial banks, with emphasis on credit risk, interest rate risk, legal risk, and operational risk;
Identify the key aspects of major bank regulations, as well as the pros and cons of the bank regulatory environment;
Make basic commercial and consumer lending decisions, based on financial analysis of many types of borrowers;
Discuss internal controls and methods of preventing bank fraud;
Analyze net interest margin and its components and understand the relationship between balance sheet management and earnings performance;
Fluently speak the “language” of commercial banking, including many industry-specific terms and concepts; and
Describe influences affecting the banking industry today.

BFIN 460 Derivative Securities and Risk Management: 3 Credits (3 Lec)

PREREQUISITE: BFIN 322 and BFIN 357; or ECNS 313 & EIND 373, and ECNS 345 or AGBE 345 or EGEN 325. (F, Sp) Introduction to derivative securities, their markets and their relation to the markets for real and financial assets. Focuses on the trading and valuation of derivative securities (futures, options, etc.), and their role in financial risk management for financial institutions and corporations. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration

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Acquire a solid knowledge of terminology, concepts, and principles in derivative markets. \\n
Learn the valuation of derivative securities and explore the relationships between a stock option price and the underlying stock price
Acquire the ability to interpret derivatives price movements and examine the relationship between forward/futures prices and spot prices \\n
Learn the technique in trading derivative securities.
Explain and demonstrate the risk/returns tradeoff in investments using derivatives.
Acquire the ability to quantify investment risk and use derivatives to hedge risk for risk management.

BFIN 461 Portfolio Management: 3 Credits (3 Other)

PREREQUISITE: BFIN 322. (F, Sp) Students learn how to analyze a company from an investment standpoint and manage the DA Davidson Student Investment Program portfolio. Students apply portfolio theory to create an optimized version of the portfolio and compare its performance to the actual portfolio. Online registration reserved for business majors & other majors for whom this course is a degree requirement. Other interested students email business@montana.edu to request registration
Repeatable up to 6 credits.

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Apply the application of top-down and bottom-up fundamental analysis using macroeconomic, industry, and company specific information.
Apply financial statement analysis to make judgments about a firm’s liquidity, profitability, efficiency, and the quality of its earnings and growth prospects.
Apply various equity valuation techniques to arrive at conclusions about the investment attractiveness of stocks.
Bring together points 1-3 above in a coherent fashion, generate a comprehensive company research report, and defend their investment opinion.
Use acquired equity research skills to make brief but comprehensive stock purchase recommendations and present them to the class for consideration.
Analyze an existing stock portfolio, make well thought-out buy and sell decisions, formulate and implement a portfolio strategy, and apply portfolio optimization techniques to enhance performance.
Use statistical techniques to measure portfolio performance against a market benchmark, such as the SP 500 Index.

BFIN 490R Undergrad Research: 1-6 Credits (1 Other)

PREREQUISITE: Senior standing and consent of instructor. () Offered as needed based on student demand. For business majors: formal admission to the College of Business. Directed undergraduate research/creative activity which may culminate in a research paper, journal article, or undergraduate thesis. Course will address responsible conduct of research
Repeatable up to 12 credits.

BFIN 491 Special Topics: 1-4 Credits (1-4 Lec)

Offered as needed based on student demand.

BFIN 492 Independent Study: 1-3 Credits (1-3 Other)

PREREQUISITE: Junior standing, consent of instructor, and approval of Associate Dean. (F, Sp, Su) Directed research and study on an individual basis. Not to be used as a substitute for a required course
Repeatable up to 6 credits.

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Vary depending on individual proposals

BFIN 494 Seminar/Workshop: 1 Credits (1 Other)

PREREQUISITE: Junior standing and as determined for each offering. Topics offered at the upper-division level which are not covered in regular courses. Students participate in preparing and presenting discussion material
Repeatable up to 4 credits.

BFIN 498 Internship: 1-12 Credits (1-12 Other)

(F, Sp, Su) An individualized assignment arranged with an agency, business, or other organization to provide guided experience in the field. Directed research and study on an individual basis.
Repeatable up to 12 credits.

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Apply specific business skills, concepts, models, etc. in internship
Identify and work toward learning goals specific to internship
Learn about personal and professional strengths, weaknesses, and interests.

BFIN 530 Accounting and Finance for the Entrepreneur: 3 Credits (3 Lec)

(F) Every business course has broad responsibilities so in this course we help develop the analytical thinking required to view business as an integrated whole rather than a set of isolated areas of concentration.

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Prepare basic financial statements, and use them to conduct ratio analysis and DuPont analysis.
Use time value of money concepts to compute present and future values.
Explain the relations between returns and risks and use them to compute expected returns.
Use fundamental finance concepts to make individual and business financial decisions.
Use financial techniques to solve problems like investment feasibility, internal rate of return, and weighted average cost of capital.
Evaluate a firm’s financial operations and financial structure and conduct short-term financial management.
Comprehend information presented in the financial press and financial media.