Finance Guide Spring 2015

This is the fiftieth edition of the most useful guide to the mysteries and wonders of the electives offered by the finance faculty. Here are course descriptions prepared by the instructors who will teach them.

Department Chair: Rosita Chang
Office: C-305b, 956-7592, rositac@hawaii.edu

In addition to the twelve courses listed here, there's lots more going on.

Internships are really popular and a great way to get experience. For example, in Fall 2014, 28 institutions are hosting 39 finance interns. The hosts are quite varied, including Allstate, Bank of China, Bank of Hawaii, Boeing, Central Pacific Bank, First Hawaiian Bank, Hawaiian Airlines, Hawaii National Bank, Merrill Lynch, Morgan Stanley, Northwestern Mutual, Servco, and UBS Financial Services. Internships are a great way to get experience. To find out more see Business 395F.

UH's Study Abroad Program and the Shidler College’s Exchanges offer life changing opportunities. Imagine yourself studying in London, Paris, Seville, Florence, Hong Kong, Singapore, Shanghai, Delhi, Bangkok, Korea, and many other places just by deciding and applying. It's hard to pass this up! There's financial aid available, with a little planning the courses you take will count toward graduation, and it doesn't cost all that much more than just staying here. See www.studyabroad.org and click on programs, or visit the Study Abroad Center, Moore Hall 115. See Rikki Mitsunaga, OSAS, for assistance in scheduling your courses so that they will count towards the Shidler College of Business’ degree requirements.  Visit www.shidler.hawaii.edu/international or Rikki Mitsunaga in B-101 for information.

CFA, CFP®If you are interested in preparing for Chartered Financial Analyst  or the Certified Financial Planner® designations, please attend the information sessions scheduled during FMA General Meeting. For more information, please contact David Hunter 956-8063 for CFA® or Judith Mills Wong 956-8738 for CFP®.

Finance continues to be a popular major. For Spring 2013 through Fall 2013 Shidler College graduates by major were:

Accounting

106 Intl Business 52
Finance 103 MIS 37
Marketing 92 HRM 36
Management 74 Ent. 34
    Total 534

The Financial Management Assoc. (Finance Club) continues to offer a varied professional and social experience. Its bulletin board is outside D-104 and website is www.fmahawaii.org.

Courses

FIN301: PERSONAL FINANCIAL PLANNING

Rosita Chang (rositac@hawaii.edu): W/F 9:00am

The course focuses on the principles and techniques for handling personal financial decisions, including personal budgeting, obtaining credit, life and casualty insurance, buying a home, buying an automobile, saving and investments, and retirement planning. It is relevant in today’s complex finance world and prepares you to take charge of managing your own finances and investment. The course will also enable you to be a more sophisticated consumer in an increasingly complex financial environment. The course is open to both business and non-business majors, and serves as the first course in the financial services and planning (FSP) track. No prerequisites are required.

FIN305: PROBLEMS IN BUSINESS FINANCE (WI)

Judith Mills-Wong (jmills@hawaii.edu): T/Th 12:00, W/F 12:00pm

You learned about finance from a textbook in Business 314. You may have seen finance in action where you work. Finance 305 puts the two together, applying the textbook principles to actual business cases involving problems and alternatives confronting financial managers. You’ll have the chance to develop spreadsheet models of case studies, analyze and solve problems facing managers such as planning the start of a new company division, taking a company public, and managing working capital for a non-profit institution.  The course is writing intensive, which means we will use writing as part of learning. Grades are based on case analysis, midterm, final, class participation, and writing projects. As a case oriented course, it is good preparation for Bus 345.

FIN 311: INVESTMENTS

David Hunter (hunterd@hawaii.edu): T/Th 10:30am and
Qianqiu Liu (qianqiu@hawaii.edu): W/F 9:00am

This course is designed to provide students with an understanding of the trading and valuation of financial securities. It will also familiarize students with financial markets and institutions, such as stock exchanges, brokerages, mutual funds, and hedge funds. The main topics include: financial securities and trading; financial institutions; security offerings; the investment process (asset allocation and security selection); how to understand investment risk and return; asset pricing models and their applications to portfolio allocation decisions; the Efficient Market Hypothesis; behavioral finance; stock and bond valuation; and an introduction to derivative securities. This course provides a good foundation for those students who are interested in sitting for the series seven securities license exam, the CFP®, and the CFA exams. This course is a prerequisite for most other finance courses.  All finance majors are required to take this course.

FIN 321: INTERNATIONAL FINANCE

Mitsuru Misawa (Misawa@hawaii.edu): W/F 9:00am

In this course you’ll learn how to measure and manage various risks such as transaction, operating, and accounting exposures.  You will study how to make money in foreign exchange markets; arbitrage and manipulation.  You will study how to use options, SWAP, futures, and other derivatives in the currency markets.  You will also learn the techniques of international capital budgeting in detail.  Early registration is recommended since the class often becomes full on the first day of registration.  Seniors are given priority registration.  Professor Misawa worked with the Industrial Bank of Japan, the most prestigious investment bank in Japan, now known as Mizuho Corporate Bank, for 30 years. His career included assignments as an investment banker in New York and Tokyo, for 15 years each.  Misawa-Honjo International Fellowship is available for a total of $30,000/a year to be divided among 4 recipients who want to study in Japan; see Professor Misawa for more information.  He recently published 2 books: “Current Business and Legal Issues in Japan’s Banking and Finance Industry (the 2nd edition)”, and “Cases on International Business.”

FIN 341: FINANCIAL ASPECTS OF NEW VENTURES

Ben Bystrom (bbystrom@hawaii.edu): T/Th 12:00pm

This course takes a broad approach to entrepreneurial finance including: assessment of financial needs, arranging venture financing, assessing value to the entrepreneurs and investor(s), financial aspects of strategic planning, analyzing the tradeoffs between alternative financing choices and flexibility and control, and how to harvest the investment. The class is for both practicing and aspiring entrepreneurs, investors in early-stage ventures, and students who seek a better understanding of more advanced issues in corporate finance.  A series of cases will examine the issues and problems that confront entrepreneurs at all stages of new venture development, starting from the original idea to harvesting the investment.

FIN 415: SECURITY ANALYSYS & PORTFOLIO MANAGEMENT

David Hunter (hunterd@hawaii.edu): T/Th 9:00am

This course is recommended for students who want to pursue careers in asset management or investment banking industries.  This course blends portfolio theory with practical issues that one encounters during the investment process.  Topics include the definition of investor objectives and constraints, identification of risk and return characteristics, strategic allocation of investment assets, management of risk and return using derivatives, and analysis of investment performance.  Students in this class will learn to develop an investment policy, build an investment portfolio, collaborate with classmates about investment ideas, analyze investment performance, and then present and defend that performance to their peers.  This course is important for students preparing to take the CFA exams.

FIN 467WI: SEMINAR IN FINANCIAL PLANNING

Judith Mills-Wong (jmills@hawaii.edu): Th 6:00pm. Pre: FIN301 & FIN311 and three of the following courses: INS 300, FIN490E, FIN490F, ACC 401 or permission of the instructor.

A capstone for the financial services and planning track and the last course in the preparation series for the CFP® Certification Exam.  The class will use the case method to develop a comprehensive view of the financial planning process. The class is writing intensive and designed to give students experience in applying and interpreting the financial planning information learned in the prerequisite courses. 

FIN490C: JAPANESE FINANCIAL MANAGEMENT

Mitsuru Misawa (Misawa@hawaii.edu): W/F 10:30am. This course is an extension of FIN321, which is not a prerequisite but recommended.

Japan’s economy spurred by “Abenomics” has showed promising signs of life after more than 20 years of deflation.  The financial management of Japanese corporations is attracting attention from all over the world.  There are significant differences remain between the financial management philosophy and techniques used within Japanese companies and those used in the US, including the use of capital budgeting techniques, economic and political assessment of projects, decision-making styles, and techniques of corporate governance.  The class will use the 2nd edition of Misawa’s case book published by World Scientific (Imperial College in London).  These cases are the fruit of his insight into Japanese corporations which was nurtured during his tenure at the Industrial Bank of Japan (now Mizuho Financial group) as an investment banker for 30 years and by his current field studies consisting of numerous visits to and interviews with managers of those corporations.  These case studies teach the students the analytical techniques for international business and financial management which are indispensable for fully understanding Japanese corporations and which also provide a perspective for analyzing the corporate cultures, customs and systems unique to Japanese corporations.

FIN490D: FINANCIAL ANALYIS

Rosita Chang (rositac@hawaii.edu): Th 6:00pm. Pre: FIN311 or FIN634.

For students seeking to obtain the Chartered Financial Analyst (CFA) designation, this course is the ideal preparation for CFA Level 1 exam.  Topics covered include Ethics, Qualitative Methods, Economics, Financial Statement Analysis, Corporate Finance, Markets and Instruments, Equity Investments, Debt Investment, Derivative Investments, Alternative Investments, and Portfolio Management.  Students meet once a week for 3 to 6 hours to go over assigned material and homework problem. Due to the comprehensive nature of the curriculum for the CFA Level 1 Exam, students are expected to independently progress.

FIN 490F: ESTATE PLANNING

Lani Starkey (lani.starkey@uhfoundation.org): W 6:00pm. Pre: FIN301.

This course introduces various aspects of estate and gift tax planning with particular emphasis on the nature, valuation, transfer, administration, and taxation of property. This course is intended to be part of a preparatory program for the CFP® Certification Examination and is designed to meet the education requirements necessary for passing the estate planning portion of the CFP® Certification Exam.

RE330: REAL ESTATE APPRAISAL/ANALYSIS

Nicholas Ordway (olgierd@hawaii.edu): T/Th 10:30am

Did you ever want to find out what something was worth? While this course focuses on the valuation of residential real estate, the techniques you will learn can be applied to virtually any kind of real or personal property. The course deals with an analysis of real property, including feasibility analysis, market analysis, market analysis, income property capitalization, and general real estate valuation techniques. It is designed to give you practical information and skills allowing you to produce professional reports. A feature of the course is that it allows you to tap the wealth of information that exists on the Internet. No prerequisites.

BUS 395F FINANCE INTERNSHIP

Rick Varley (rvarley@hawaii.edu). Pre: Consent.

Get valuable professional experience and make great contacts. Put your finance education to work in an on-the-job experience with a local financial consulting firm, bank or other financially related internship. You can find your own internship, or work with the internship office to identify your ideal employer. An up-to-date-list of Shidler approved internships is available online at https://shidler-hawaii-csm.symplicity.com/. You will work at least 10 hours a week for a fall or spring internship or 15 hours a week in a summer internship, for a minimum of 150 hours. It’s a credit/no credit class, with credit based on your intern sponsor’s evaluation of you, plus two short papers. The internship can be used for an upper division general elective course, but not for the finance major. You will need a 3.0 GPA. To register, obtain a course code by completing the on-line profile at https://shidler-hawaii-csm.symplicity.com/

Other

Career Services

As you prepare to graduate, be sure to go to Shidler Career Links at https://shidler-hawaii-csm.symplicity.com/, complete your profile and upload your resume. Once this has been completed, start searching the extensive database of Hawaii-based and national job listings.  Our office provides Career Advising – Interested in a company? Networking? Negotiating Salaries? We offer professional workshops on a variety of career related topics. We answer any questions you have about how to get the best career for you. Resume Writing – What is the difference between a CV, a resume, a work history? Useful tips for getting and keeping in touch with references? If you have questions we have the answers. Interview Preparation – Explain away weaknesses and focus on your strengths! We will help you answer those tough interview questions. 

Certified Financial Planning Courses

The Financial Services and Planning Track is designed to help students prepare for a career in personal financial planning.  Successful completion of all the courses in the series qualify a person to sit for the Certified Financial Planner® Exam. Obtaining CFP® certification identifies one as a true professional in one of the fastest growing and exciting careers today.  (Further information about the CFP® designation can be found at www.cfp.net).  FIN490E, FIN490F, and/or FIN467 can be taken after graduation through UHM Outreach College.  For questions regarding the FSP track, contact Judith Mills Wong. (jmills@hawaii.edu)

The Chartered Financial Analyst (CFA®)

CFA® designation is a globally recognized credential.  Any students interested in a career in investment management should take the Level 1 CFA® exam in your senior year.  The CFA® program is a self-study curriculum whose topics include ethics, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income investments, derivatives, alternative investments, portfolio management, and wealth planning.  To receive the CFA® charter, a candidate must sequentially pass three examinations, have at least three years of experience working in the investment decision-making process, and fulfill the CFA® Institute membership requirements.  Note that students may apply for either of two CFA® exam scholarships: (1) The University of Hawaii is one of the CFA® Institute's recognized universities, and can award each December up to five scholarships per year. (2) The CFA® Institute also offers each September an "Access Scholarship" directly through their website. For more information about the CFA® designation and the profession, contact Professor David Hunter. (hunterd@hawaii.edu)