This course examines the structure and functions of modern US and international financial markets and institutions. The course covers the nature of the global financial system, interest rate determination, pricing of interest-rate dependent securities, money market instruments, the goals and roles of central banks, and commercial banking. Students will develop a thorough understanding of modern financial institutions and will learn to apply modern financial theory to practical problems in liability pricing and management. Prerequisites: ECN 5050, FINP 5008 or equivalent, FIN 5080, and QNT 5040.

( ECN 5050 OR GMP 5050 )
AND ( FIN 5080 OR GMP 5080 )
AND ( QNT 5040 OR GMP 5040 )

Entrance Competencies:
1. Apply discounted cash flow techniques to the valuation of corporate securities.
2. Calculate projected future cash flows and discuss the impact of inflation on future cash flows.
3. Calculate stand-alone risk, market risk and diversifiable risk and discuss the exact mathematical relationship between risk and return.
4. Discuss the forms of market efficiency, the various ways that firms raise capital and the investment banking process.
5. Discuss the uses of standard option contracts for modifying corporate risk exposure.
6. Understand, calculate, and apply the concepts of total risk, market risk, and diversifiable risk inherent in investment analysis.
7. Use Microsoft Excel to construct multi-period financial models.

Exit Competencies:
Upon completion of this course, the student will be able to:
1. Describe various financial securities and discuss the organization of securities markets.
2. Define a money market and differentiate from a capital market. Discuss the roles that financial intermediation and capital assets play in the money and capital markets.
3. Calculate a variety of interest rates used in modern financial and money markets. Discuss the strengths and weaknesses of various types of interest rate quotes.
4. Define a yield curve, a zero curve and a forward rate curve. Discuss the biased and unbiased theories of the yield curve shape. Define, discuss and calculate interest rate sensitivity measures (duration and convexity) for a bond and a portfolio of bonds.
5. Discuss the competing goals of central banks and the tradeoffs that central bankers encounter. Define, describe and apply the various central banking tools to modern macroeconomic problems.
6. Describe the structure, products, regulation and management of a modern global commercial banking firm. Contrast with a non-banking firm.

VALUE PARADIGM:
Since most corporate decisions involve monetary expenditures that affect the financial well being of a firm, it is imperative that students understand financial management techniques and their impact on value over time. Value Driven Management and the Value Theory provide a framework for analysis that allows the decision maker to integrate the subjective nature of value and financial data in all decisions or actions.

1. Required Materials


1. Textbooks

Money and Capital Markets with S&P Bind - in- Card - 10.Edition - 2008
Peter S. Rose
McGraw-Hill
ISBN: 9780077235802



APA Manual
Effective October 1^st 2009, the 6th edition of the APA Manual is required for all courses.

NSU Bookstore
Textbooks and Case Studies may be purchased from the NSU Bookstore (located in the University Park Plaza) by calling 1-800-509-2665 or online at http://www.nsubooks.bkstore.com.



2. Recommended Materials

1.        Powerpoint Slides: A set of Powerpoint slides is available on the textbook website: www.mhhe.com/rose10e08. Follow the link for student resources. Your instructor may provide additional slides if warranted.
2.        Calculator or Excel: The practice of Financial Modeling requires familiarity with spreadsheet software. The most encountered package in Corporate America is currently Microsoft Excel. This course presumes knowledge of Excel. The student should be able to use a variety of statistical and financial functions and should know how to perform cell referencing. Many of the assigned problems for this course can be completed with a financial calculator. If you have a financial calculator from a previous course and are familiar with its use, then upgrading your skills to Microsoft Excel should present no significant problems.
3.        Corporate Finance Textbook: Brigham, E. F., & Ehrhardt, M. C. (2008). Financial Management: Theory and Practice (12th ed.). Ohio: Thomson South-Western. Thomson Learning ISBN: 0-324-25968-9.
d.        The Wall Street Journal, Financial Times, Barron's, The Economist and/or other current periodicals in finance.


The NSU libraries comprise the Alvin Sherman Library, Research, and Information Technology Center, East Campus Branch Library, Health Professions Division Library, Law Library and Technology Center, North Miami Beach Branch Library, University School Library Media Centers, and the William S. Richardson Ocean Science Library. Students are strongly encouraged to visit one of the physical locations and/or take advantage of the vast electronic library available for research. For more information, please visit http://www.nova.edu/library.

The NSU libraries comprise the Alvin Sherman Library, Research, and Information Technology Center, East Campus Branch Library, Health Professions Division Library, Law Library and Technology Center, North Miami Beach Branch Library, University School Library Media Centers, and the William S. Richardson Ocean Science Library. Students are strongly encouraged to visit one of the physical locations and/or take advantage of the vast electronic library available for research. For more information, please visit http://www.nova.edu/library.

Please note that all required and recommended materials should be referenced in APA style.