DEPARTMENT OF FINANCE

Dr. Ahmed Alanzi , Chair.
Degree Offered: Bachelor of Business Administration (BBA) with Concentration in Finance

General Department Information

Never has there been a more appropriate time to study finance. Alfaisal University, College of Business offers a concentration in Finance which aims to provide students with a theoretical and practical understanding of the fundamental principles of finance. It introduces students to evaluation models that are used by finance practitioners to evaluate assets and investments. Students will start with the basic principles of time value of money. This will lead to valuing bonds and shares and understanding the role they play both in the firm and in the market place.

Students will learn how a financial manager evaluates a project taking into consideration the cost of funding the project and the risk associated with the project. Students will also develop an understanding of the nature of the firm, its objectives and the ethical implications of these objectives. The concentration covers the following six courses and three Business course electives.

Concentration Core Courses (18 hours)

Finance concentration must complete all the courses below. For double concentration, see general notes above.

C. Concentration Core Courses (18 hours)

Course Code

Course-Title

Credits

Prerequisite
Course Code

FIN 308

Managerial Finance

3

FIN 201

FIN 310

Computer Applications in Accounting & Finance

3

ACC 202

FIN 320

Corporate Finance

3

FIN 308

FIN 350

Financial Markets & Institutions

3

FIN 201

FIN 410

Investments

3

FIN 201

FIN 420

International Finance

3

FIN 308











Finance Course Descriptions

FIN 201: Principles of Finance (3 credits) (BCC)

FIN 201 is a core second year course for all students in the College of Business. The course introduces students to the role of financial markets and institutions in facilitating the flow of funds between the deficit and surplus sectors in an economy. Basic principles of the allocation of financial resources and time value of money are explained, together with risk and return fundamentals and the valuation techniques of debt and equity securities.
Prerequisite: ACC 201

FIN 308: Managerial Finance (3 credits) (CCC)

This is a third year course for all students concentrating in Finance. The unit is concerned with the duties of the financial manager in the business firm. These duties involve the financial tasks of planning, extending credit to customers, evaluating large expenditures, and raising money to fund the firm's expenditures.
Prerequisite: FIN 201

FIN 310: Computer Applications in Accounting & Finance (3 credits) (CCC)

This is a third year core unit for the Finance concentration students. This course uses spreadsheets for financial analysis, risk analysis, valuations, investment management, credit analysis, scenario analysis, budgeting, sales forecast, financial projections, project evaluation, etc. The use of Excel as a tool for modeling, basics skills in recording, writing and using Macros in Excel is also covered. Prior basic accounting knowledge of debits/credits, account classifications, and the accounting cycle for businesses in service and merchandising, industries is required.
Prerequisite: ACC 202

FIN 320: Corporate Finance (3 credits) (CCC)

Corporate finance involves the financial management and value of business entities. In this unit we investigate how managers make investment, financing, and dividend decisions. Investment decisions are based on discounted cash flow techniques and their extensions. These extensions enable us to study a wide range of problems including: new investments, investments with unequal terms, optimal replacement, and project abandonment.
Prerequisite: FIN 201

FIN 340: Contemporary Financial Issues (3 credits) (BEC)

This course examines current financial issues that are shaping the global financial environment. This course discusses and debates the relevance of traditional financial models in contemporary financial events. The unit further includes the analysis of business cycles from a finance perspective i.e. the stock markets and their systemic impact.
Prerequisite: FIN 201

FIN 374: Real Estate (3 credits) (BEC)

The course will provide an introduction to real estate with broad overview of real property concepts and characteristics, legal considerations, influences on real estate values, types of value, economic principles, market area analysis, investment and financing issues, brokerage, development, and management. Special emphasis will be given to the changing roles of real estate executives and professionals, methods of creating economic and social value, the dynamics of emerging markets, and opportunities for careers in real estate.
Prerequisite: FIN201

FIN 350: Financial Markets and Institutions (3 credits) (CCC)

This course is a final year core class for students concentrating in Finance. The course explores the structure and activities of various financial institutions in the global financial system. The course examines the growing importance of Central Banking actions and policies on achieving macroeconomic objectives. The changing regulatory environment facing commercial banks since the global financial crisis of 2008 as well as the Saudi Mortgage Law are also covered in detail.
Prerequisite: FIN201

FIN 376: Entrepreneurial Finance (3 credits) (BEC)

This course is intended to empower students to be successful in developing and financing the ideas they bring to market. The overriding orientation is to apply theory and methods of finance and economics to incubating and growing new ventures. The course focuses on value creation as the objective for all entrepreneurial strategic and financial decisions.
Prerequisite: FIN 201

FIN 377: Fixed Income Securities (3 credits) (CCC)

This is a basic course in the analysis of fixed income securities. This course focuses on the modern valuation techniques for a variety of fixed income securities based on an observed term structure of interest rates. Recognized topics include bond pricing, the Treasury Market, bond portfolio and risk management based on duration and convexity, yield-curve trading strategies, term structure estimation, and credit risk modelling. Part of the course, time permit, will be devoted to introduce basic stochastic interest rate models. Prerequisite: FIN 201

FIN410: Investments (3 credits) (CCC)

This is a final year support class for students majoring in Finance. The course examines the theory and practice of portfolio management and security analysis through the implementation of advanced regression and Excel tools for empirical research and quantitative problem solving. Students are required to develop an automated trading model in MS Excel as well as actively manage a diversified portfolio of financial assets using a range of local and international trading platforms.
Prerequisite: FIN 201

FIN 420: International Finance (3 credits) (CCC)

This course examines international financial markets, and the opportunities they present for achieving risk management and asset allocation objectives. The principle focus will be on assets traded in liquid markets: currencies, equities, bonds, swaps, and other derivatives. Analytical tools for risk and return measurement, portfolio management, hedging, and implementing dynamic investment strategies in an international context will be examined
Prerequisite: FIN 308

FIN 450: Financial Trading Strategies (3 credits) (BEC)

This course aims to introduce students to the global markets including international stock markets and indices, commodities and currencies in the spot market. Student will learn the difference between fundamental and technical analysis and be able to make a trading decisions. Moreover, the course provides the students with the basic chart reading and analysis including support and resistance points, moving averages, Bollinger bands and various indicators. During the course students have a practical experience buying and selling several financial instruments.
Prerequisite: FIN 201

FIN 467: Banking Management (3 credits) (BEC)

The course aims to introduce students to the banks and their services; organization and structure of banks; financial statements of a bank; measuring and evaluation of bank performance; asset and liability management, hedging against interest rate risk, duration gap, the management of the bank's investment function and liquidity position, Basel Agreement on International Capital Standards, and regulations and reform.
Prerequisite: FIN 201

ECO 101: Microeconomics (3 credits) (BCC)

This course provides an introduction to essential concepts, principles, theories, and models of microeconomics. It approaches the core economic questions of "what", "how", and "for whom" to produce from free market perspective. It covers basic principles of microeconomics including price system, behaviors of consumers and producers, market structures, public policy, and income distribution. The exposition will consist of simple algebra with frequent recourse to graphs.

ECO 102: Macroeconomics (3 credits) (BCC)

Macroeconomics is about understanding how economy functions as a whole covering issues such as aggregate economic production of goods and services, economic growth and unemployment, money supply and interest rates, inflation, unemployment, fiscal and monetary policies and foreign exchange markets. In addition to building theoretical foundation, real world applications and examples relevant to Saudi and world economies will be provided through various in-class and online activities and assignments.
Prerequisite: ECO 101

ECO 310: International Economics (3 credits) (BEC)

This course will introduce both Micro-economics and Macro-economic issues relevant to the economics relations among countries. The first half of the course explores the theoretical microeconomics foundations of international trade.
Prerequisite: ECO 101

ECO 320: Islamic Economics & Finance (3 credits) (BEC)

The course introduces foundations and instruments of Islamic economics and finance. It consists of two parts. The first part covers Islamic economics while the second part will cover Islamic finance and banking. In the first part Islamic economics and review of its fundamental economic principles are presented. It provides historical development of Islamic economic thought and contrasts it with the conventional one. In the second part, it provides relationship between Islamic economics and finance. Foundations of Islamic finance and its historical development are discussed and key Islamic financial instruments are introduced and compared with conventional instruments.
Prerequisite: ECO 102





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