Finance Department’sX220 Presentation

Prof. Craig Holden (cholden@indiana.edu)Prof. Craig Holden (cholden@indiana.edu)

Chair, Finance Depart. Undergraduate CommitteeChair, Finance Depart. Undergraduate Committee

Prof. Dan Greiner (dgreiner@indiana.edu)Prof. Dan Greiner (dgreiner@indiana.edu)

Finance I-Core InstructorFinance I-Core Instructor

Finance Department Web Site:Finance Department Web Site:

www.kelley.iu.edu/financewww.kelley.iu.edu/finance

Careers in Finance Major Areas:Major Areas:

1.1. Corporate FinanceCorporate Finance

2.2. InvestmentsInvestments

3.3. BankingBanking

4.4. InternationalInternational Specialized Areas:Specialized Areas:

Financial Consulting Financial Consulting Investment BankingInvestment Banking Real EstateReal Estate

Major Areas: (1.) Commercial Banking

Credit Credit analystanalyst loan officerloan officer

Branch ManagerBranch Manager Relationship BankingRelationship Banking Capital MarketsCapital Markets

(2.) Corporate Finance Line PositionLine Position

plant management/planningplant management/planning Staff PositionStaff Position

corporate management/planningcorporate management/planning TreasuryTreasury

risk managementrisk management capital acquisitioncapital acquisition mergers and acquisitionsmergers and acquisitions

(3.) Investments

SalesSales TradingTrading ResearchResearch

investment analysisinvestment analysis product developmentproduct development

(4.) International

Working outside of the U.S. or in the U.S. Working outside of the U.S. or in the U.S. arm of a multinational corporationarm of a multinational corporation

International Financial AnalysisInternational Financial Analysis International InvestmentsInternational Investments International BankingInternational Banking

Specialized Areas: Financial Consulting Providing advising servicesProviding advising services

business valuationbusiness valuation litigation supportlitigation support capital acquisitioncapital acquisition restructuringrestructuring

EmployersEmployers Big-5 accounting firmsBig-5 accounting firms Management consulting firmsManagement consulting firms

Investment Banking

two-year analyst positiontwo-year analyst position very competitive (i.e., it takes a high GPA)very competitive (i.e., it takes a high GPA)

Real Estate

Real estate developmentReal estate development CorporateCorporate SalesSales Financial institutionsFinancial institutions

Placement Information

Finance students have Finance students have approximately 12 approximately 12 interviews each in the interviews each in the BPOBPO

Although most find Although most find jobs through the BPO, jobs through the BPO, a significant number a significant number find them through find them through networking. networking.

2000 graduates average 2000 graduates average starting salary = $39,557starting salary = $39,557

Survey suggests it grows Survey suggests it grows at 7%/yearat 7%/year $48,000 after 3 years$48,000 after 3 years $55,000 after 5 years$55,000 after 5 years

Some very high salariesSome very high salaries

The New “Finance Core” What:What: Effective Fall 2001, Finance Core = Effective Fall 2001, Finance Core =

F303 Intermediate InvestmentsF303 Intermediate Investments F305 Intermediate Corporate FinanceF305 Intermediate Corporate Finance Linked together for non-honors studentsLinked together for non-honors students Honors students take F304 and F305Honors students take F304 and F305 On Finance Tract: number of electives 4 On Finance Tract: number of electives 4 3 3 On Real Estate Tract: A311 required On Real Estate Tract: A311 required elective elective Prerequisites for all 400-level finance electives:Prerequisites for all 400-level finance electives:

(either F303 or F304) and F305(either F303 or F304) and F305

Why

Increase corporate finance content by Increase corporate finance content by requiring a corporate finance course (F305)requiring a corporate finance course (F305)

Increase spreadsheet modeling treatment in Increase spreadsheet modeling treatment in both the investments course (F303) and the both the investments course (F303) and the corporate finance course (F305)corporate finance course (F305)

Current Finance MajorCurrent Finance Major New Finance MajorNew Finance Major

9 hours of accounting9 hours of accounting3 hours of F3033 hours of F30312 hours of finance 12 hours of finance electives (4 courses)electives (4 courses)

------------------------------------------------------------24 hours total24 hours total

9 hours of accounting9 hours of accounting6 hours of F303 / F3056 hours of F303 / F3059 hours of finance 9 hours of finance electives (3 courses)electives (3 courses)

------------------------------------------------------------24 hours total24 hours total

Finance Electives

1.1. Corporate FinanceCorporate Finance F307 - Working Capital ManagementF307 - Working Capital Management F402 - Corporate Financial StrategyF402 - Corporate Financial Strategy F408 – Real Options and Strategic Capital F408 – Real Options and Strategic Capital

Investment (new)Investment (new)2.2. InvestmentsInvestments

F335 - Security Trading and Market MakingF335 - Security Trading and Market Making F420 - Fixed Income and Equity InvestingF420 - Fixed Income and Equity Investing F421 - Derivative Securities and Corporate F421 - Derivative Securities and Corporate

Risk ManagementRisk Management

Finance Electives3.3. Commercial BankingCommercial Banking

G345 - Money, Banking, and Capital MarketsG345 - Money, Banking, and Capital Markets F446 - Banking and Financial IntermediationF446 - Banking and Financial Intermediation

4.4. InternationalInternational F494 - International FinanceF494 - International Finance

5.5. Entrepreneurial ElectiveEntrepreneurial Elective F317 – Venture Capital and Entrepreneurial F317 – Venture Capital and Entrepreneurial

Finance (new)Finance (new)6.6. Real Estate ElectiveReal Estate Elective

R305 – Introduction to Real Estate Analysis R305 – Introduction to Real Estate Analysis (new)(new)

Investment Banking Workshop Limited to 25 students admitted as JuniorsLimited to 25 students admitted as Juniors

Scholastic achievementScholastic achievement Interest in industry and leadership potentialInterest in industry and leadership potential

Speaker seriesSpeaker series New York and Chicago tripsNew York and Chicago trips F428 - Industry background and financial F428 - Industry background and financial

modelingmodeling F429 - Project/deal developmentF429 - Project/deal development

Real Estate Track

Also 24 credit hoursAlso 24 credit hours Take three specialized real estate coursesTake three specialized real estate courses

Introduction to Real Estate Analysis Introduction to Real Estate Analysis (R305)(R305)

Real Estate Appraisals (R440)Real Estate Appraisals (R440) Real Estate Finance and Investment Real Estate Finance and Investment

Analysis (R443)Analysis (R443)

Extracurricular activities

Finance ClubFinance Club Investment Banking GroupInvestment Banking Group www.indiana.edu/~finance/www.indiana.edu/~finance/

Stock Market ClubStock Market Club www.indiana.edu/~stock/www.indiana.edu/~stock/

Panel Members

Betsy Bird – Motorola, Inc.Betsy Bird – Motorola, Inc. Lisa Graf – Procter & GambleLisa Graf – Procter & Gamble Darcie Lehmann – Deloitte & Touche LLPDarcie Lehmann – Deloitte & Touche LLP Travis Perry – PPG Industries Travis Perry – PPG Industries Ted Phillips – Arthur Anderson LLPTed Phillips – Arthur Anderson LLP Sean Triplett – General Electric CompanySean Triplett – General Electric Company Richard Vonderhaar – Goldman, Sachs & Co.Richard Vonderhaar – Goldman, Sachs & Co.