Finance

Description of Program

The finance curriculum is designed to provide students with knowledge of the major concepts and practices of financial management, while at the same time helping to develop their analytical, decision-making and communication abilities. The finance major prepares students for careers in business and/or postgraduate work by educating them in the fundamental principles and practical applications of modern financial analysis.

The careers of the majority of finance graduates can be broadly classified into one of four groups: personal financial planning, financial institutions management, corporate finance, and investments. Drake’s program offers students a choice of study from specializations consistent with these classifications. Graduates are prepared for advanced study in business or finance or to assume responsible, entry-level managerial positions in financial management in business, government and not-for-profit entities included. Furthermore, they possess an excellent foundation for future growth and career development.

Requirements for Major

The basic core courses of the finance major are:

  • Finance 102 — Advanced Corporate Finance
  • Finance 119 — Financial Institutions, Instruments and Markets
  • Finance 193 — Portfolio Analysis
  • Finance 197 — Seminar in Finance
  • Economics 105 — Money and Banking

These courses provide the student with a thorough grounding in each of the functional areas of the finance discipline. It is recommended that students take Economics 105 in the sophomore year; Finance 101, 102 and 119 in the junior year; and Finance 193 and 197 in the senior year. Students should have completed Statistics 71 and Statistics 72 by the end of their sophomore year.

The remainder of the program depends upon the student’s choice from among four career specializations or tracks: personal financial planning, financial institutions management, corporate finance, and investments. These tracks correspond to the most common careers pursued by finance graduates. Students interested in a more in-depth understanding of accounting may wish to pursue the accounting/finance joint major. (See Accounting for more information.) The descriptions and requirements of each track follow.

Personal Financial Planning

Personal financial planning is the process of developing, implementing, and monitoring a financial plan that will allow an individual to meet his or her personal goals. It requires knowledge of investment vehicles, tax shelters and tax planning, insurance, risk management and personal, business, retirement and estate planning. Personal financial planning is offered by a wide variety of financial institutions and is a growth area within the financial services industry. Students choosing this track may wish to consider a concentration in insurance.

Required courses:

  • Core courses of the finance major (FIN 102, 119, 193, 197, ECON 105)
  • Accounting 185 - Individual Taxation
  • Business Law 120 – Business Law II
  • Insurance 51 – Personal Risk Management
  • One of:
    • Economics 174 – Intermediate Macroeconomic Analysis
    • Finance 129 – Financial Institutions Management
    • Finance 170 – International Finance
    • Finance 190 – Equity Valuation and Analysis
    • Insurance 161 – Insurance Company Operations

Financial Institutions Management

With the deregulation of the banking and financial services industry, the need for specialists in this area is growing rapidly. Managers of banks, investment banks, insurance companies, and brokerage firms will need a background in both financial management and economic analysis as the roles of the various institutions become increasingly blurred.

Required courses:

  • Core courses of the finance major (FIN 102, 119, 193, 197, ECON 105)
  • Finance 129 – Financial Institutions Management
  • Business Law 120 – Business Law II
  • Insurance 161 – Insurance Company Operations
  • One of:
    • Accounting 90 – Profit Planning and Control
    • Economics 130 – International Economics
    • Economics 174 – Intermediate Macroeconomic Analysis
    • Finance 170 – International Finance
    • Finance 190 – Equity Valuation and Analysis
    • Insurance 51 – Personal Risk Management
    • Insurance 141 – Business Risk Management

Corporate Finance

The finance function within the modern corporation requires a solid foundation in accounting coupled with a thorough understanding of financial management. This track provides a solid foundation  in accounting and prepares students for a challenging career as a corporate financial analyst. Students choosing this track may wish to consider the accounting/finance joint major.

Required courses:

  • Core courses of the finance major (FIN 102, 119, 193, 197, ECON 105)
  • Accounting 90 – Profit Planning and Control
  • Accounting 115 – Cost Accounting
  • Two of:
    • Accounting 125 – Cost Management Systems
    • Accounting 185 - Individual Taxation
    • Economics 173 – Intermediate Microeconomic Analysis
    • Finance 129 – Financial Institutions Management
    • Finance 170 – International Finance
    • Finance 190 – Equity Valuation and Analysis
    • Insurance 141 – Business Risk Management
    • *At least one elective must be a finance elective. Finance 170 is recommended.

Investments

This track emphasizes the investment function within finance. It prepares students for careers with firms that have extensive investment holdings such as brokerage houses, investment banks, insurance companies, and pension funds. The accounting requirements provide a solid foundation for understanding a firm's financial statements.

Required courses:

  • Core courses of the finance major (FIN 102, 119, 193, 197, ECON 105)
  • Accounting 165 – Financial Accounting I
  • Accounting 166 – Financial Accounting II
  • Finance 170 – International Finance
  • One of:
    • Accounting 185 – Individual Taxation
    • Accounting 167 – Financial Accounting III
    • Economics 107 – Introduction to Econometrics
    • Economics 130 – International Economics
    • Economics 174 – Intermediate Macroeconomic Analysis
    • Finance 190 – Equity Valuation and Analysis

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