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FINANCE ANDBUSINESS ECONOMICSSenior Concentration Elective Course GuideSpring 2009November 11, 2008

Business Economics ConcentrationThis concentration is attractive to students seeking careers in fields that require economic analysis. Analysts inmany consulting firms - such as business, management, litigative, valuation, strategy and compensation - use suchskills extensively. It is also helpful for students pursing financial analysis, research, strategic planning or analyticalpositions for business or government, or are considering advanced professional degrees such as law or graduatestudy in economics, finance, or other fields. Courses feature a thorough exposure to issues in applied economics,policy analysis, business and finance, valuation and law. This concentration emphasizes the economic and legalunderpinnings of today's businesses and the development and application of computer-based econometric andforecasting models.Required courses for this concentration:NoneSelect FOUR courses for this option:BUAD 350BUAD 351FBE 324FBE 402FBE 403FBE 416FBE 421FBE 428mFBE 429FBE 433FBE 443FBE 445FBE 462FBE 464Macroeconomic Analysis for Business DecisionsEconomic Analysis for Business DecisionsThe Financial SystemGovernment and BusinessLegal Environment of BusinessManagerial EconomicsFinancial Analysis & ValuationPrinciples of Employment LawInternational Business LawCompensation, Incentives, and Corporate GovernanceIntroduction to Forecasting and Risk AnalysisTopics in Economic Analysis of Business Strategy and PolicyInternational Trade and Commercial PolicyInternational FinanceCorporate Finance ConcentrationThe Corporate Finance Concentration prepares students for careers in financial management as corporate treasurers,financial analysts, money managers, and commercial and investment bankers. The courses in the Corporate FinanceConcentration apply to the central principles of finance– net present value, market efficiency, agency costs,incremental cash flow, information asymmetries, adverse selection, arbitrage, modern portfolio theory, capital assetpricing, option pricing, and sustainable growth –to better understand the practice of finance in financial and nonfinancialfirms. Topics covered include the valuation of securities, portfolio management, the choice of debt versusequity, dividend policy, the analysis of investment projects, mergers and acquisitions, financial restructuring,management of working capital, and financial analysis.Required courses for this concentration:NoneSelect FOUR courses for this concentration:FBE 421 Financial Analysis and ValuationFBE 425 Management of Financial InstitutionsFBE 429 International Business LawFBE 431 Financial Policies and Corporate ControlFBE 432 Corporate Financial StrategyFBE 433 Compensation, Incentive, and GovernanceFBE 435 Applied Finance in Fixed Income SecuritiesFBE 436 Financial Management of Multinational CorporationsFBE 437 Entrepreneurial Finance: Financial Management of Developing FirmsFBE 458 Law and FinanceFBE 459 Financial DerivativesACC 415x Intermediate Financial Accounting for Non-Accounting Majors3

Financial Analysis & Valuation ConcentrationThe financial analysis and valuation concentration will offer Marshall undergraduate students’ intensive instructionand training to prepare for careers in financial analysis and valuation, including positions in global financialinstitutions such as hedge funds and portfolio management firms and commercial and investment banks.Required courses in the financial analysis and valuation concentration are offered jointly through the Finance andBusiness Economics Department and the Leventhal School of Accounting and focus on advanced principles infinancial accounting, financial reporting, financial analysis and valuation and corporate financial strategy. Theoryand cases are used to understand the practice of finance and accounting in financial and non-financial firms.Accounting topics include corporate financial reporting, financial statement analysis, information disclosures relatedto complex securities, mergers and acquisitions, off-balance sheet financing and stock options. Finance topicsinclude the valuation of companies, management decision making related to capital structure, capital raising,mergers and acquisitions, financial restructuring, management of working capital, and other strategic alternatives forcompanies in search of growth opportunities and shareholder value.Required courses for this concentration:FBE 421ACC 415xACC 416ACC 417xFinancial Analysis and ValuationIntermediate Financial Accounting for Non-Accounting MajorsFinancial Reporting & AnalysisAdvanced Financial Accounting for Non-Accounting MajorsSelect ONE course for this concentration:FBE 431FBE 432Financial Policies and Corporate ControlCorporate Financial StrategyAdmission Materials & RequirementsConcentration declaration forms for the Undergraduate Certificate Program in Financial Analysis and Valuation canbe obtained from Academic Advising in Marshall Undergraduate Student Services in BRI-104.The following MUST be included with the application:• Official transcripts with at least a 3.50 GPA out of 4.0 scale and at least a “B+” course grade in : BUAD 250A,BUAD 250B or BUAD 305, BUAD 306 and BUAD 310.• Transfer students must include their college transcript which shows a grade of A for both transferred introductoryaccounting courses.CreditAt the completion of the program, the certificate will be awarded to students who obtain a minimum GPArequirement of 3.70 or higher in the Certificate’s required courses taken at the USC Marshall School of Business.For additional information, please contact Helen Pitts at hpitts@marshall.usc.edu or (213) 740-6554.4

General Financial Management ConcentrationThe General Financial Management Concentration will prepare students for positions as financial analysts incorporations, investment banking firms, commercial banks, consulting firms, money management firms, and a wideset of other business enterprises.Students who successfully complete this concentration will have an understanding of "real world" institutionaldetails, finance principles, and accounting information that will enable them to structure and execute conceptuallysophisticated cash flow and valuation analysis for a broad range of finance applications. They will be able to usefinancial data to analyze companies in a conceptual framework that recognizes the critical role of business strategyin determining company value. Not only will students be well versed in quantitative techniques, but they will alsohave an appreciation for the limitations of those techniques in the complex and changing business world.This option consists of four advanced (and complementary) courses that will develop financial analysis skillssubstantially beyond the level of BUAD 306. To complete this option, students must take at least four of thecourses listed below and earn a grade of C or better in each.Select at least TWO of the following courses (Required):FBE 421 Financial Analysis and ValuationFBE 429 International Business LawFBE 431 Financial Policies and Corporate ControlFBE 432 Corporate Financial StrategyFBE 435 Applied Finance in Fixed Income SecuritiesFBE 441 InvestmentsFBE 446 Advanced Topics in Portfolio Management and InvestmentSelect up to TWO of the following courses for this concentration:FBE 324 The Financial SystemFBE 425 Management of Financial InstitutionsFBE 428m Principles of Employment LawFBE 433 Compensation, Incentive, and GovernanceFBE 436 Financial Management of Multinational CorporationsFBE 437 Entrepreneurial Finance: Financial Management of Developing FirmsFBE 440 Trading and ExchangesFBE 458 Law and FinanceFBE 459 Financial DerivativesFBE 462 International Trade and Commercial PolicyFBE 464 International FinanceFBE 470 Advanced Real Estate AnalysisFBE 489 Real Estate Capital MarketsACC 415x Intermediate Financial Accounting for Non-Accounting MajorsA total of FOUR courses is required for this concentration.5

Investments and Financial Markets ConcentrationInvestments and Financial Markets Concentration provides training for students interested in careers in portfoliomanagement, securities trading, and institutional and retail securities sales (brokerage). Investments and financialmarkets courses develop specific skills for analyzing and implementing investment strategies and for analyzingspecific classes of securities. This training establishes basic principals governing the performance of securitiesmarkets and is excellent background for all careers involving raising or investing corporate or government funds.Required course for this concentration:FBE 441 InvestmentsSelect THREE additional courses for this concentration:FBE 324 The Financial SystemFBE 421 Financial Analysis and ValuationFBE 425 Management of Financial InstitutionsFBE 435 Applied Finance in Fixed Income SecuritiesFBE 440 Trading and ExchangesFBE 443 Introduction to Forecasting and Risk AnalysisFBE 446 Advanced Topics in Portfolio Management and InvestmentFBE 459 Financial DerivativesFBE 464 International FinanceReal Estate Finance ConcentrationThe Real Estate Finance Concentration involves the application of business decision-making tools in the real estateindustry. Emphasis is placed on economic and financial analysis of issues in real estate markets including thoserelated to investment and development. You must take at least four courses.Required course for this concentration:FBE 391Real Estate Finance and InvestmentSelect up to ONE of the following courses for this concentration:FBE 324 The Financial SystemFBE 421 Financial Analysis and ValuationFBE 425 Management of Financial InstitutionsFBE 441 InvestmentsFBE 459 Financial DerivativesPPD 435 Analyzing Real Estate Markets for Planning and DevelopmentSelect at least TWO of the following courses (Required): (For a total of THREE elective courses.)FBE 427 Real Estate LawFBE 466 Management of Real Estate Development: Feasibility StudiesFBE 470 Advanced Real Estate AnalysisFBE 489 Real Estate Capital MarketsA total of FOUR courses is required for this concentration - - one required course + three elective courses.6

Real Estate & Construction Management ConcentrationReal Estate and Construction Management Concentration is designed for students interested in construction andproject management aspects of the real estate development process. Course work includes upper division courses inconstruction engineering and management from the Civil Engineering DepartmentRequired courses for this concentration:FBE 391FBE 466FBE 470CE 460Real Estate Finance and InvestmentManagement of Real Estate Development: Feasibility StudiesAdvanced Real Estate AnalysisConstruction Engineering (Civil Engineering Department)Select TWO additional courses for this option:FBE 427 Real Estate Law, orCE 412 Construction Law and the Property Development ProcessCE 461 General Construction EstimatingCE 462 Construction Methods and EquipmentCE 472 Construction Labor ManagementReal Property Development ConcentrationDesigned for students interested in working at the nexus of real estate, architecture and urban planning. Coursework includes upper division courses or courses for non-majors in the School of Policy, Planning and Developmentand the School of Architecture.Required courses for this concentration:FBE 391 Real Estate Finance and InvestmentsFBE 466 Management of Real Estate Development: Feasibility StudiesFBE 470 Advanced Real Estate AnalysisSelect ONE additional course for this option:ARCH 106x Workshop in ArchitectureARCH 304x Intensive Survey: Prehistory to the PresentGEOG 281L Environmental Geographic Information Systems (Geography Department)PPD 417 History of Planning and Development (School of Policy, Planning, & Development)PPD 435 Analyzing Real Estate Markets for Planning and DevelopmentPPD 470 History and Development of CitiesSelect ONE additional course for this option:CE 460 Construction Engineering (Civil Engineering Department)FBE 427 Real Estate LawFBE 489 Real Estate Capital MarketsNotes:Undergraduates wishing to enroll in graduate courses for undergraduate credit must secure prior approval.(Graduate courses are numbered 500 and above.)Many of the courses in both of these options fulfill some of the course requirements for licensing in realestate brokerage and appraisal in the State of California.7

Senior Option Table – Spring 2009CONCENTRATIONSBusinessEconomicsCorporateFinanceFinancialAnalysis &ValuationGeneral FinancialManagementInvestments &FinancialMarketsReal EstateFinance(16 Units)Real Estate andConstructionManagement(20-22 Units)Real EstateDevelopment(17-20 Units)NoneNoneChoose at least 2REQUIREDCoursesFBE 421ACC 415xACC 416 (2)ACC 417x (2)FBE 421FBE 431FBE 432FBE 441FBE 446FBE 441 FBE 391 FBE 391FBE 466FBE 470CE 460 (3)FBE 391FBE 466FBE 470Choose at least 4Choose 4Choose 1Choose up to 2Choose 3Choose 2Choose 2Choose 1ELECTIVECoursesBUAD 350BUAD 351FBE 324FBE 402FBE 403FBE 416FBE 421FBE 428mFBE 429FBE 433FBE 435FBE 443FBE 445FBE 462FBE 464FBE 421FBE 425FBE 429FBE 431FBE 432FBE 433FBE 435FBE 436FBE 437FBE 458FBE 459ACC 415xFBE 431FBE 432FBE 324FBE 425FBE 428mFBE 429FBE 433FBE 435FBE 436FBE 437FBE 440FBE 458FBE 459FBE 462FBE 464FBE 470FBE 489ACC 415x(TOTAL:at least 4 courses)FBE 324FBE 421FBE 425FBE 429FBE 435FBE 440FBE 443FBE 446FBE 459FBE 464FBE 427FBE 466FBE 470FBE 489Choose at least 1FBE 324FBE 425FBE 441FBE 459FBE 421PPD 435FBE 427 orCE 412 (3)CE 461 (3)CE 462 (3)CE 472 (2)ARCH 106x (2)ARCH 304 (4)GEOG 281L (4)PPD 417 (4)PPD 435 (4)PPD 470 (4)Choose 1CE 460 (3)FBE 427FBE 489Note: FBE 391 and/or FBE 421 may be taken in the student’s junior year if desired.8

UNDERGRADUATE ELECTIVE OFFERINGSFBE 391: Real Estate Finance and InvestmentUrban real estate resources, definitions and background; financial aspects of real estate markets and investments;urban and regional real estate markets and the development process.How do you classify various property rights? What is an escrow? How do you begin analyzing a real estateproject? Other topics covered include deeds and conveyances, sources of mortgage financing, principles ofvaluation and urban real estate structure and problems. This is an ideal introductory course providing students withan overview of real estate principles and practices. This is a prerequisite course for other real estate electives. (Thiscourse satisfies the "Principles" requirement for students interested in obtaining a California Salesperson's License.)Prerequisite: BUAD 306FBE 400x: Introduction to Real Estate Finance and DevelopmentCase analysis examining economic and financial aspects of real estate decisions for non-business majors. Focuseson dynamics of financing, markers and the development process. Open to all major. Not available for credit as asenior options course for business majors or for students in the real estate option. (Duplicates credit in former FBE200x)Prerequisite: NoneFBE 421: Financial Analysis and ValuationThis course develops and utilizes tools of financial analysis to evaluate the performance and assess the value ofindividual companies in an industry and strategic context. The course will cover various approaches or models forfinancial analysis and valuation. It will stress applied issues such as the choice among various terminal valueassumptions in valuation analysis, the relation between growth and valuation, and assessments of leverage thatincorporate off-balance sheet financing. Students will learn to apply tools of financial analysis and severalvaluation methodologies to evaluate a company’s strategic and competitive positioning, financial performance, andstrategic alternatives. The major emphasis will be on utilizing and interpreting financial data to improve financialdecision making. The applications we will cover in the course include enterprise and equity valuation in mergersand acquisitions, corporate restructurings, divestitures, management and leveraged buyouts, liquidations, and initialpublic offerings of common stock, and the use of financial analysis to predict financial distress, dividend policychanges, and future financing requirements.Prerequisite: BUAD 306FBE 427: Real Estate LawBy taking this course students learn the theory and practical applications of substantive real estate law. All majortopics of real property law as well as current trends and issues will be addressed. Sufficient material is covered forpreparation for real estate license examinations. By the end of the course you will be familiar with the following:• Characteristics of American law by which property rights are created, controlled, collateralized and transferred• Extent of real estate interests including landlord-tenant• Agency law and regulation of licenses• Acquisition contracts and conveyancing• Commercial and residential financing• Real estate development and financing• Construction law and remedies• Escrows and closing, including title insurance• Tax aspects of real estate ownership and transfers• Probate distributions• Public policy law and issues, including zoning and eminent domainPrerequisite: None9

FBE 428m: Principles of Employment LawThis course presents a comprehensive treatment of employment and labor law topics. The course commences with areview of the common law governing the employment relationship and proceeds to address the significant federaland state laws and regulations affecting that relationship. The course coverage includes the rights andresponsibilities of private, unionized and public sector employers. Special emphasis is placed upon emerging andgrowing enterprises wherein legal liability, retention, and human resources issues have become increasinglycomplex. Issues relevant to international employers are also presented.Prerequisite: NoneFBE 429: International Business LawThis course will require students to consider how the markets, people, and placed involved in trade, commerce, andexchanges throughout the world influences international business. Students will become aware of the effect thatdifferent cultural, political, and economic aspects of business have on each other. The course will require studentsto think how different international laws affect the way our own country and countries throughout the world dobusiness. Specifically, students will examine such topics as the ethics of international law, international commercialdispute resolution national import and export regulations, international contract low, financial transactions, transportof goods, law of intellectual rights, and antitrust.Prerequisite: NoneFBE 431: Financial Policies and Corporate ControlThis course focuses on the development of a framework that is useful for understanding a broad range of majorcorporate financial decisions. Substantial emphasis will be placed on discussion of (i) the determinants of corporatedebt and dividend policies, (ii) the allocation and value of corporate voting rights, and (iii) alternative methods ofsecurity issuance and retirement.The discussion will include application of the theory to issues such as common stock repurchases, initial publicofferings, public offerings and private placements of seasoned stock, equity carve-out financing, junk bondfinancing, exchange offers and recapitalizations, management buyouts, high leverage restructuring, financial policyunder conditions of distress, and the general relation between financial leverage and corporate investment policy.Prerequisite: BUAD 306FBE 432: Corporate Financial StrategyThe purpose of this course is to understand the practical aspects of the major types of investment and financialdecisions of corporations using a mixture of cases and discussions, supplemented by lectures. We will apply theconcepts and techniques you studied in BUAD 306 to real world situations. While our focus is primarily oncorporate finance, we will also examine the links between finance and the main strategic objectives of the firm. Theidentification of these linkages and the constraints they impose on financial decisions makers is an important part ofthe course.Prerequisite: BUAD 306FBE 435: Applied Finance in Fixed Income SecuritiesThe objectives of this course are to:• Describe important fixed income securities and markets, and• Develop tools for valuing fixed income securities and managing interest rate risk.The course covers traditional bonds and term structure concepts as well as fixed income derivatives and interest ratemodeling.The study of fixed income securities is quantitative by nature and the material in this course is very analytical.Please keep this in mind in deciding whether to take the course.Prerequisite: BUAD 30610

FBE 437: Entrepreneurial Finance: Financial Management for Developing FirmsThis course involves studying how to manage a growing, developing firm from a finance point of view. The coursestarts by examining different types of profit and the implications of each. Then management of the financialstatements followed by extensive study of cash flow analysis is made. This is a common theme that runs throughthe entire course– because developing firms run on cash, not profit. Next, the course develops criteria for a start-upbusiness along with ways to develop the "package" and raise the money. Growing the company is the next topic anda different approach is undertaken from the usual cost of capital approach. Long and short-term sources of financeis then studied with particular reference to what is needed by developing firms. Cash management and accountsreceivable management is then studied. Finally, the process of buying a company via a leveraged buy-out will bestudied utilizing much of the material previously studied.Prerequisite: BUAD 306FBE 440: Trading and ExchangesThis course will introduce students to the theory and practice of securities trading at exchanges and in dealernetworks. Special attention will be directed towards understanding:• Why and how people trade• The principals of proprietary trading• Why market institutions are organized as they are• How they are changing in response to information technology innovations• The origins of liquidity, volatility, price efficiency, and trading profits• The role of public policy in the marketTo address these questions, we must understand why and how institutions, dealers, and individuals trade.Understanding trader behavior is a primary course objective.At the end of this course, you should be able to:• Solve various trading problems• Recognize various trading styles• Judge whether you will be a successful trader• Evaluate and motivate brokers• Design markets• Effectively lobby policy-makers on market issuesPrerequisite: BUAD 306FBE 441: InvestmentsThis course is designed to give students a rigorous exposure to contemporary investment and portfolio theory andpractice. Analytical tools for evaluation of stocks, bonds, derivative securities, and security portfolios will bepresented. Students will demonstrate and refine their understanding and ability to apply analytical concepts throughcompletion of course projects.Prerequisite: BUAD 306FBE 443: Introduction to Forecasting and Risk AnalysisDevelops econometric tools for projecting economic activity and estimating financial risk. The course willemphasize econometric applications of data analysis to problems currently focused on by investment banks to pricefinancial assets, and by consultants to project business activity. Versions of the Capital Asset Pricing Model andfactor models will be estimated using stock market data to provide the portfolio manager with efficient estimates ofmarket risk.Prerequisites: BUAD 306 and BUAD 310 with a grade of B or better11

FBE 458: The Legal Environment of FinanceChoice of noncorporate business forms: formation and operation of general partnerships, limited partnerships, andlimited liability companies; Corporation law: formation and operation of corporations, liability of officers, directors,and shareholders; State corporation laws: California law, Delaware law; Operating as an entrepreneur: soleproprietorships, franchising, licensing; International business: operating in other countries, forms for conductinginternational business; Financing a corporation: going public, registration process with the SEC; Privateplacements: requirements for a private placement, small offerings; Going private: shareholder rights, shareholdersqueeze-outs; Trading in securities: securities frauds, insider trading; Financing international transactions: sales ofgoods, letters of credit; Mergers and acquisitions: friendly mergers, shareholder rights; Hostile takeovers: tenderoffer rules, defensive maneuvers and poison pills; Credit: unsecured credit transactions, secured credit transactions;Leveraged buyouts: financing, junk bonds; Commodities regulation: commodities futures, commodities frauds;Banking: formation, asset and credit activities; Bankruptcy: private bankruptcy, business reorganizations.Prerequisite: NoneFBE 459: Financial DerivativesThe objective of this course is to introduce students to financial derivatives, particularly futures, options, and swaps.Students will learn the basic mechanics and cash flows of these instruments; how the markets operate; what factorsaffect their price; how one can formulate strategies to use such instruments for hedging, speculation, and arbitrage.We will learn not only how prices are initially formed, but also how to value derivatives as market conditionschange. We will explore different models from the pricing of options including binomial trees and the importantBlack-Scholes model.This course will focus on the tremendous range of possibilities offered by derivatives for firms and financialinstitutions in managing or hedging risk, in speculating efficiently on market beliefs, and in profiting from potentialarbitrage operations. Specifically, we will study derivative instruments on stocks, fixed income securities, foreignexchange, interest rates, and commodities. Main topics will include futures, options, and swaps. The optionssection will include the binomial model, the Black-Scholes model, and current innovations in option markets.Students taking this course will gain a solid working knowledge of derivatives, which have become the “buzzword”of finance in the 1990’s. They will be able to use this foundation to analyze widely publicized cases such as thecollapse of the Barings Securities, or the Orange County debacle, or losses (and subsequent lawsuit against BankersTrust) by Proctor and Gamble. These cases have made evident the tremendous dangers of improper use ofderivatives, and thus teach a valuable lesson.Prerequisite: BUAD 306FBE 462: International Trade and Commercial PolicyThis course surveys the major topics in the theory of international trade. Like all branches of economics, this courseis concerned with decision-making with respect to the use of scarce resources to meet desired economic objectives.It is consequently concerned with how international transactions influence such things as social welfare, incomedistribution, employment, growth, and the possible ways public policy can affect the outcomes. We will focus onsuch questions as:1) What determines the basis for trade?2) What are the effects of trade?3) What determines the value and the volume of trade?4) What factors impede trade flows?5) What is the impact of public policy that attempts to alter the pattern of trade?We will cover most basic trade theories and their policy implications. In this course, we will analyze various tradeand industrial policies, for instance, tariff, quota, VER, anti-dumping, customs union. We will also discuss the U.S.trade law, institutional framework of WTO/GATT, the Uruguay Round negotiations, the Multi-Fiber Agreement,and NAFTA. This course is concerned mainly with the non-monetary aspect of international economics. Themonetary and balance of payments issues are only marginally discussed.Prerequisites: Econ 203 and Econ 20512

FBE 464: International FinanceThis course focuses on various aspects of international financial markets. The goal of the course is to preparestudents to function effectively in the global economy. Most U.S. companies are involved in some way withinternational transactions. The course provides the framework and the institutional knowledge necessary tounderstand and to use the international financial markets effectively.The subjects covered in the course are: An overview of the current international arrangement and the majorinternational financial institutions; spot foreign exchange rates, forward and futures contracts and how they arerelated; spot and future foreign exchange options; balance of payments issues; eurocurrency accounts; and swaps.Current policy issues and how they relate to the financial markets are discussed throughout the course.In addition, through individual and group projects, students have the opportunity to discover how actual exchangerates behave and to assess some current forecasting models.Prerequisites: BUAD 310FBE 466: Management of Real Estate Development: Feasibility StudiesCase study analysis of real estate development, combining with attention to macroeconomics, finance, legal aspects,marketing, and construction technology. Leaders from the industry are featured as guest speakers on special topics.Group development proposals will be prepared and presented.This is the capstone course for the Real Property Development and Management Program. Students are exposed toall aspects of the development process, enhanced by industry professionals who appear as guest speakers.Development teams are formed and students are required to prepare and present a development proposal. Theproposals incorporate construction and valuation techniques, where students are able to apply the informationlearned in other real estate courses throughout this program. This course is only offered in the Spring Semester.Prerequisites: FBE 391 and FBE 470 or FBE 400xFBE 470: Advanced Real Estate AnalysisThis course is designed to facilitate mastery of the core skills required of real estate professionals, be theydevelopers, financiers, brokers, investment managers, etc. Each position requires the ability to think critically aboutvaluation and the elements used in its construction. The class helps develop this faculty by exercising the student’sanalytical abilities in a number of different contexts. These include acquisition, development and financing ofinvestment real estate, asset management, corporate real estate, lease analysis, distressed properties and the realestate workout process – including bankruptcy. The course is appropriate for students interested in real estate withstrong finance skills and a desire to broaden their exposure to some of the unique aspects of real estate.Prerequisites: FBE 391FBE 489: Real Estate Capital MarketsThis course is an introduction to the major concepts, principles, analytical methods and tools useful for makingmicro-level investment and finance decisions regarding commercial real estate assets. The primary objective of thecourse is to combine the theory of finance with the practice of real estate capital markets. We will study the"institutional" real estate decision making (e.g., banks, life insurance companies, pension funds, REIT s), regardinglarge-scale commercial property. At this level of focus, we must rigorously integrate real estate finance topics with,and build our methodology upon, the modern corporate finance and investments perspective. We will also coversuch topics as various mortgage instruments, the theory and analytics of valuation and analysis of the mortgages andmortgage-backed securities, prepayment and default risk analysis of mortgages, structured finance and structure andinvestment analysis of REIT s. With this focus and objective in mind, this course is taught primarily as a "financecourse", viewing real estate investment as one field of application of the financial economic principles that have beendeveloped over the past three decades in the areas of corporate finance and securities investments.Prerequisites: FBE 39113

COURSES OFFERED THROUGH THE LEVENTHAL SCHOOL OF ACCOUNTINGPlease check with the Leventhal School of Accounting for availability of the following courses.ACCT 415x Intermediate Financial Accounting for Non-Accounting Majors(Offered in the fall and spring semesters)This course is designed for students who will become users of financial statements. The content of the course willinclude analyzing the transactions of the firm through journal entries and t-accounts; preparing financial statements;analyzing actual financial statements in order to understand the underlying economic events; and discussing articlesin the professional literature. As the course progresses, we will also examine the accounting issues related to suchadvanced topics as pensions, leases and stockholders’ equity.Prerequisite: BUAD 250b or BUAD 305.ACCT 416 Financial Reporting and AnalysisThis course examines the role of financial statement analysis in the evaluation of the firm and the prediction of itsfuture condition.The course is designed to provide:i. the skills to analyze financial statementsii. exposure to public sources of financial information used in capital marketsiii. an appreciation for the usefulness and limitations of financial statement analysis in specific decisioncontextsPrerequisite: BUAD 215x or BUAD 306; and ACCT 370b or ACCT 412x or ACCT 415x.ACCT 417x Advanced Financial Accounting for Non-Accounting MajorsDevelop capabilities to identify, articulate and interpret financial statements reflecting complex merger andacquisition activities, with a focus on financial analysis and investment banking. Develop experience in analyzingaccounting information from the perspective of its various users (e.g., equity investors, creditors, companymanagement, auditors, etc.)Prerequisite: BUAD 215x or BUAD 306; and ACCT 370b or ACCT 415x.14

Finance and Business Economics Elective Courses and Schedule 2008-2009Course Number Course DescriptionSemester OfferedSpring Summer FallBUAD 403 Legal Environment of Business X X XFBE 391 Real Estate Finance and Investment X XFBE 400x Introduction to Real Estate Finance and Development X XFBE 421 Financial Analysis and Valuation X XFBE 427 Real Estate Law X XFBE 428m Principles of Employment Law XFBE 429 International Business Law XFBE 431 Financial Policies and Corporate Control X XFBE 432 Corporate Financial Strategy X XFBE 435 Applied Finance in Fixed Income Securities XFBE 436 Financial Management of Multinational Corporations XFBE 437 Financial Management for Developing Firms XFBE 440 Trading and ExchangesFBE 441 Investments X XFBE 443 Introduction to Forecasting and Risk Analysis XFBE 458 The Legal Environment of Finance X XFBE 459 Financial Derivatives X XFBE 462 International Trade and Commercial Policy X XFBE 464 International Finance X XFBE 466 Management of Real Estate Development: Feasibility Studies XFBE 470 Advanced Real Estate Analysis X XFBE 489 Real Estate Capital Markets XPlease check with specific departments and programs for availability of the following courses:ACCT 415xIntermediate Financial Accounting for Non-Accounting MajorsACCT 416Financial Reporting and AnalysisACCT 417xAdvanced Financial Accounting for Non-Accounting MajorsPPD 417History of Planning & DevelopmentPPD 435Analyzing Real Estate Markets for Planning & DevelopmentPPD 470History & Development of CitiesARCH 106xWorkshop in ArchitectureARCH 304xIntensive Survey: Prehistory to the PresentCE 412Construction Law & the Development ProcessCE 460Construction EngineeringCE 461General Construction EstimatingCE 462Construction Methods & EquipmentCE 472Construction Labor ManagementGeog 381LEnvironmental Geographic Information Systems15

Department of Finance and Business Economics3670 Trousdale Parkway, Ste. 308Bridge Hall 308, MC-0804Los Angeles, CA 90089-0804Tel: 213/740-6515 • Fax: 213/740-6650http://www.marshall.usc.edu/FBEfbe@usc.edu November 11, 2009