Finance Department’s X220 Presentation

1. Finance Department’sX220 Presentation Prof. Craig Holden (cholden@indiana.edu) Chair, Finance Depart. Undergraduate Committee Prof. Dan Greiner (dgreiner@indiana.edu) Finance I-Core Instructor Finance Department Web Site: www.kelley.iu.edu/finance

2. Careers in Finance • Major Areas: • Corporate Finance • Investments • Banking • International • Specialized Areas: • Financial Consulting • Investment Banking • Real Estate

3. Major Areas: (1.) Commercial Banking • Credit • analyst • loan officer • Branch Manager • Relationship Banking • Capital Markets

4. (2.) Corporate Finance • Line Position • plant management/planning • Staff Position • corporate management/planning • Treasury • risk management • capital acquisition • mergers and acquisitions

5. (3.) Investments • Sales • Trading • Research • investment analysis • product development

6. (4.) International • Working outside of the U.S. or in the U.S. arm of a multinational corporation • International Financial Analysis • International Investments • International Banking

7. Specialized Areas: Financial Consulting • Providing advising services • business valuation • litigation support • capital acquisition • restructuring • Employers • Big-5 accounting firms • Management consulting firms

8. Investment Banking • two-year analyst position • very competitive (i.e., it takes a high GPA)

9. Real Estate • Real estate development • Corporate • Sales • Financial institutions

10. Finance students have approximately 12 interviews each in the BPO Although most find jobs through the BPO, a significant number find them through networking. 2000 graduates average starting salary = $39,557 Survey suggests it grows at 7%/year $48,000 after 3 years $55,000 after 5 years Some very high salaries Placement Information

11. The New “Finance Core” • What: Effective Fall 2001, Finance Core = • F303 Intermediate Investments • F305 Intermediate Corporate Finance • Linked together for non-honors students • Honors students take F304 and F305 • On Finance Tract: number of electives 4  3 • On Real Estate Tract: A311 required  elective • Prerequisites for all 400-level finance electives: • (either F303 or F304) and F305

12. Why • Increase corporate finance content by requiring a corporate finance course (F305) • Increase spreadsheet modeling treatment in both the investments course (F303) and the corporate finance course (F305)

14. Finance Electives • Corporate Finance • F307 - Working Capital Management • F402 - Corporate Financial Strategy • F408 – Real Options and Strategic Capital Investment (new) • Investments • F335 - Security Trading and Market Making • F420 - Fixed Income and Equity Investing • F421 - Derivative Securities and Corporate Risk Management

15. Finance Electives • Commercial Banking • G345 - Money, Banking, and Capital Markets • F446 - Banking and Financial Intermediation • International • F494 - International Finance • Entrepreneurial Elective • F317 – Venture Capital and Entrepreneurial Finance (new) • Real Estate Elective • R305 – Introduction to Real Estate Analysis (new)

16. Investment Banking Workshop • Limited to 25 students admitted as Juniors • Scholastic achievement • Interest in industry and leadership potential • Speaker series • New York and Chicago trips • F428 - Industry background and financial modeling • F429 - Project/deal development

17. Real Estate Track • Also 24 credit hours • Take three specialized real estate courses • Introduction to Real Estate Analysis (R305) • Real Estate Appraisals (R440) • Real Estate Finance and Investment Analysis (R443)

18. Extracurricular activities • Finance Club • Investment Banking Group • www.indiana.edu/~finance/ • Stock Market Club • www.indiana.edu/~stock/

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