Finance Department’sX220 Presentation

Professor Craig HoldenProfessor Craig Holden

Chair, Finance Dept. Undergraduate CommitteeChair, Finance Dept. Undergraduate Committee

Professor Dan GreinerProfessor Dan Greiner

Coordinator, Integrated CoreCoordinator, Integrated Core

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.

2001 graduates average 2001 graduates average starting salary = $43,214starting salary = $43,214

Survey suggests it grows Survey suggests it grows at 7%/yearat 7%/year $53,000 after 3 years$53,000 after 3 years $61,000 after 5 years$61,000 after 5 years

Some very high salariesSome very high salaries

Required Courses:Required Courses: F303 Intermediate InvestmentsF303 Intermediate Investments F305 Intermediate Corporate FinanceF305 Intermediate Corporate Finance A310 Intermediate Financial AccountingA310 Intermediate Financial Accounting - - NEWNEW A324 Cost Accounting (1.5 credit hours)A324 Cost Accounting (1.5 credit hours) One Accounting Elective (A327, A329, A420, One Accounting Elective (A327, A329, A420,

A422, or A437)A422, or A437) Four Finance Electives (12.0 credit hours)Four Finance Electives (12.0 credit hours)

With at least 6.0 credit hours at the 400-levelWith at least 6.0 credit hours at the 400-level

Finance Major:Finance Track, Option 1 - NEW

Finance Major:Finance Track, Option 2 Required Courses:Required Courses:

F303 Intermediate InvestmentsF303 Intermediate Investments F305 Intermediate Corporate FinanceF305 Intermediate Corporate Finance A311 Intermediate Financial Accounting IA311 Intermediate Financial Accounting I A312 Intermediate Financial Accounting IIA312 Intermediate Financial Accounting II A324 Cost Accounting (1.5 credit hours)A324 Cost Accounting (1.5 credit hours) One Accounting Elective (A327, A329, One Accounting Elective (A327, A329,

A420, A422, or A437)A420, A422, or A437) Three Finance Electives (9.0 credit hours)Three Finance Electives (9.0 credit hours)

With at least 3.0 credit hours at the 400-levelWith at least 3.0 credit hours at the 400-level

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 - Investment - NEWNEW2.2. 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 Finance F317 – Venture Capital and Entrepreneurial Finance

- - NEWNEW6.6. Real Estate ElectiveReal Estate Elective

R305 – Introduction to Real Estate Analysis – R305 – Introduction to Real Estate Analysis – NEWNEW

7.7. Accounting Elective (for Option 1 majors only)Accounting Elective (for Option 1 majors only) One course from: A329, A422, A437, or (A327 One course from: A329, A422, A437, or (A327

and A420) – and A420) – NEWNEW

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 Same number of credit hours (24) as Finance Same number of credit hours (24) as Finance

TrackTrack Take A310 Intermediate Financial AccountingTake A310 Intermediate Financial Accounting Take three specialized real estate coursesTake three specialized real estate courses

Introduction to Real Estate Analysis (R305)Introduction to Real Estate Analysis (R305) Real Estate Appraisals (R440)Real Estate Appraisals (R440) Real Estate Finance and Investment Analysis Real Estate Finance and Investment Analysis

(R443)(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 Donna Broadstreet – Indiana UniversityDonna Broadstreet – Indiana University Karen Domer – AndersenKaren Domer – Andersen Angela Grannan – Clifton Gunderson LLPAngela Grannan – Clifton Gunderson LLP Daniel Hintz – Merrill Lynch Daniel Hintz – Merrill Lynch Crystal Taylor – Old National BankCrystal Taylor – Old National Bank