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Finance
In the College of Business Administration
Office: Student Services 3356
Telephone: (619) 594-5323
A Member of the American Assembly of
Collegiate Schools of Business.
The Personal Financial Planning Certificate is registered with International Board of Certified Financial Planners.
Emeritus: Fisher, Hippaka, Hungate, Nye, Reints, Schmier
Chair: Varaiya
Professors: Gitman, Haddad, Hutchins, Omberg, Salehizadeh, Short, Sterk, Vandenberg, Varaiya, Warschauer
Associate Professors: Block, Bost, Cherin, Do, Ely, Houston, Padmanabhan (IVC), Sachdeva, Song, Wilbur (Associate Dean and Director, Undergraduate Program)
Master of Science degree in business administration.
Master of Business Administration.
Major in finance with the B.S. degree in business administration.
Major in financial services with the B.S. degree in business administration.
Major in real estate with the B.S. degree in business administration.
Teaching major in business for the single subject teaching credential.
Minor in finance.
Minor in real estate.
Certificate in personal financial planning.
The undergraduate business administration program at San Diego State University is structured such that students desiring a business administration major are first admitted to the prebusiness administration major for their first two years of university work. During these first two years students should complete general education courses and a common core of nine lower division preparation for the business major courses - Accountancy 201, Financial Accounting Fundamentals; 202, Managerial Accounting Fundamentals; Finance 140, Legal Environment of Business; Economics 101, Principles of Economics (Macro); Economics 102, Principles of Economics (Micro); Information and Decision Systems 180, Principles of Information Systems; Information and Decision Systems 290, Business Communication (not required for accounting majors); Mathematics 119, Elementary Statistics for Business; and Mathematics 120, Calculus for Business Analysis. These prerequisite courses may not be taken Cr/NC; the minimum grade in each class is C. All students must have fulfilled the SDSU Mathematics Competency and SDSU Writing Competency requirements and have completed 56 college units.
Supplemental admissions criteria must be met before students may declare an upper division major and be eligible for upper division courses. For current information concerning admissions criteria and procedures, contact the Business Undergraduate Program Office (BA 448).
Also, before enrolling in upper division courses offered by the College of Business Administration, students must be competent in the operation of personal computers, including word processing and spreadsheets. These skills are required in upper division business courses.
Business administration majors may not complete a minor in the College of Business Administration.
Lower Division: Courses clearly equivalent in scope and content to San Diego State University courses required for minors or as preparation for all business majors will be accepted from regionally accredited United States institutions and from foreign institutions recognized by San Diego State University and the College of Business Administration.
Upper Division: It is the policy of the San Diego State University College of Business Administration to accept upper division transfer credits where (a) the course content, requirements, and level are equivalent to San Diego State University courses and (b) where the course was taught in an American Assembly of Collegiate Schools of Business accredited program. Exceptions require thorough documentation evidencing the above standards.
The Finance Department offers three majors: Finance, Financial Services, and Real Estate. The finance major is broadest and may include courses in all areas.
Finance. All forms of human endeavor involve finance to some degree. Within our economic system, finance is concerned with capital, which is money or property owned or used in business. Finance majors study both the sources and the uses of capital. The finance curriculum revolves around the valuation process in a free market system. Once an individual or company can value various alternatives, the allocation of resources and the decision process in business becomes much simpler.
Students who are interested in business should have a thorough understanding of the financial process. Upon graduation, students accept a wide variety of positions with business in general. The curriculum of the finance major is designed to give the student breadth in a variety of fields in addition to finance and business.
Employment prospects for graduates with finance majors are very good and forecasts remain encouraging. Graduates are typically found in six types of employment: large and small industrial firms (manufacturers of automobiles, steel, household appliances, and electronic equipment); service oriented firms (electric power, real estate and retail firms); financial institutions (banks, state and federally chartered savings and loan associations, and insurance companies); nonprofit enterprises (universities, labor unions, and foundations); and private businesses.
The diversity of entry level positions obtained by finance majors makes it difficult to describe a typical position. A major in finance does not limit career potential to banking or to any single area of business. A large number of individuals go to work for industrial companies in a variety of entry level positions that allow them to develop into top decision-making positions with those companies. A significant number of chief executive officers and other top officers of corporations have followed the "finance path" to the top.
Financial Services. Although the financial services major is based on many of the same analytical skills and theoretical foundations as the finance major, it is designed specifically to prepare students for careers in one of the segments of the financial services industry: securities, banking, insurance, real estate finance and personal financial planning. It is very common for single firms to own subsidiaries in each of these areas. So it is important for graduates entering these fields to be familiar with all aspects of these important financial sectors.
Graduates can look forward to analytical, managerial or sales careers in the financial services industry. Sales careers include insurance and securities sales. Analytical careers include loan and security analysis and personal financial planning. Managerial careers include management in each of the component industries.
Real Estate. The major objective of the real estate program at SDSU is to prepare its graduates as well-rounded professionals with a specialty in the multifaceted field of real estate and land market analysis. The changing nature of today's real estate market requires that graduates from university real estate programs receive a complete and broad approach to this field. Graduates with a major in real estate should be capable of making a wide variety of management decisions concerning real estate and related land resources. This includes the ability to utilize new economic concepts, understand changing social concerns, and apply up-to-date analytical tools such as computers to the process of real estate decision making. SDSU's program in real estate provides students with analytical skills, technical competence to perform market analyses, and a better understanding of the tools necessary to perform in today's complex real estate and land markets. This is in addition to the conventional knowledge required for a license. It is the goal of the real estate program at SDSU to provide a high level of education, and thus prepare its graduates for job opportunities in a variety of organizations, large and small, public and private.
With more than two billion acres of land in the United States, important public and private decisions must be made every day about the use, management, and disposition of this vast real estate acreage. This means job opportunities for the real estate major are created in a variety of areas such as valuation, development, financing, brokerage, market analysis, and public regulation. Job opportunities in real estate may also exist even in times of economic uncertainty. For example, during recent times many enterprises, large and small, have turned their attention to maximizing returns generated by their often extensive real estate holdings. This has created a demand for a new real estate expert-one who can manage asset disposition, value existing properties, upgrade underutilized property, and negotiate lease terms and conditions. In addition, the changing nature of the financial environment in which real estate markets must operate has created a demand for people not only with basic real estate training, but also with good general business and financial skills. SDSU's real estate program recognizes this changing real estate environment and prepares it majors for these diverse opportunities.
The College of Business Administration is concerned that each individual upper division student makes reasonable academic progress toward earning a degree. To this end, the College will counsel students who have earned less than a "C" (2.0) average each semester. Further, such students will be warned that continued poor performance may result in their removal from any business major.
Preparation for the Major. Finance 140; Accountancy 201, 202; Economics 101, 102; Information and Decision Systems 180, 290; Mathematics 120 or 150; and Economics 201 or Mathematics 119. (27-30 units)
These prerequisite courses may not be taken Cr/NC; the minimum grade in each class is C. Additional progress requirements must be met before a student is admitted to an upper division major.
Upper Division Writing Requirement. Passing the University Writing Examination or completing one of the approved writing courses with a grade of C (2.0) or better.
Major. Fifty upper division units to include Finance 321, 323, 325, 327, 423; Accountancy 325, 326; Economics 490; Information and Decision Systems 302; Management 350; Management 405 or Information and Decision Systems 404; Marketing 370; six units selected from Finance 326, 329, 421, 425; and six units selected from Finance 331, 431, 435, 445, 589, or Finance 326, 329, 421, 425 if not used to meet the above requirement.
A minimum of 52 units of coursework applicable to the bachelor's degree must be completed outside the areas of business administration and economics. A maximum of six lower division units of accountancy courses may be used to satisfy degree requirements. Of the 128 units required for the degree, at least 60 units must be at the upper division level. A "C" average is required in the courses stipulated here for the major.
Preparation for the Major. Accountancy 201 and 202; Economics 101 and 102; Economics 201 or Mathematics 119; Finance 140; Information and Decision Systems 180 and 290; Mathematics 120 or 150. (27-30 units)
These prerequisite courses may not be taken Cr/NC; the minimum grade in each class is C. Additional progress requirements must be met before a student is admitted to an upper division major.
Upper Division Writing Requirement. Passing the University Writing Examination or completing one of the approved writing courses with a grade of C (2.0) or better.
Major. Forty-one upper division units consisting of Finance 323, 326, 327, 331, 521, 589; Accountancy 404; Information and Decision Systems 302; Management 350; Management 405 or Information and Decision Systems 404; Marketing 370; six units selected from Finance 421, 425, 431, 435*, 445; Accountancy 326, 504; Economics 320 or 422, 490; and Marketing 377.
A minimum of 52 units of coursework applicable to the bachelor's degree must be completed outside the areas of business administration and economics. A maximum of six lower division units of accountancy courses may be used to satisfy degree requirements. Of the 128 units required for the degree, at least 60 units must be at the upper division level. A "C" average is required in the courses stipulated here for the major.
Preparation for the Major. Accountancy 201 and 202; Finance 140; Information and Decision Systems 180, 290; Economics 101 and 102; Economics 201 or Mathematics 119; and Mathematics 120 or 150. (27-30 units)
These prerequisite courses may not be taken Cr/NC; the minimum grade in each class is C. Additional progress requirements must be met before a student is admitted to an upper division major.
Upper Division Writing Requirement. Passing the University Writing Examination or completing one of the approved writing courses with a grade of C (2.0) or better.
Major. Thirty-nine to forty upper division units consisting of Finance 323, 331, 335, 431 or 433, 435; Information and Decision Systems 302; Management 350; Management 405 or Information and Decision Systems 404; Marketing 370; Public Administration 320; and 9-10 additional units selected from Accountancy 404; Finance 333, 340, 431 or 433, 521; Marketing 373; Economics 422, 490; Geography 354, 559.
A minimum of 52 units of coursework applicable to the bachelor's degree must be completed outside the areas of business adminis-tration and economics. A maximum of six lower division units of accountancy courses may be used to satisfy degree requirements. Of the 128 units required for the degree, at least 60 units must be at the upper division level. A "C" average is required in the courses stipulated here for the major.
All candidates for the single subject teaching credential in business must complete all requirements for the applicable specialization as outlined in this section of the catalog under Policy Studies or Teacher Education. Students must complete the requirements of a major in one of the five departments within the College of Business Administration. In consultation with the single subject credential adviser in the College of Business Administration, undergraduate students must develop programs which fulfill the State credential requirements. All undergraduate majors must demonstrate office skills proficiency. Finance 589, Personal Financial Planning, is required of all teaching credential majors. Of the 128 units required for the degree, at least 60 units must be at the upper division level.
Student programs must be approved in advance by the College of Business Administration single subject credential adviser.
The minor in finance consists of a minimum of 21 units to include Accountancy 201; Finance 321, 323, 326, 327, and 329; Mathematics 119.
Courses in the minor may not be counted toward the major, but may be used to satisfy preparation for the major and general education requirements, if applicable. A minimum of six upper division units must be completed in residence at San Diego State University. Students with a major in the College of Business Administration or in International Business may not complete a minor in the College of Business Administration. Students must officially declare the minor before taking any upper division business courses. Additional requirements must be met before the student may obtain permission to declare a business minor. See an adviser in the Business Undergraduate Program Office (BA 448) for more information.
The minor in real estate consists of a minimum of 18 units to include Economics 102; Finance 140, 331, 335; and six units selected from Finance 333, 431, 433, and 435.
Courses in the minor may not be counted toward the major, but may be used to satisfy preparation for the major and general education requirements, if applicable. A minimum of six upper division units must be completed in residence at San Diego State University. Students with a major in the College of Business Administration or in International Business may not complete a minor in the College of Business Administration. Students must officially declare the minor before taking any upper division business courses. Additional requirements must be met before the student may obtain permission to declare a business minor. See an adviser in the Business Undergraduate Program Office (BA 448) for more information.
The purpose of this program is to provide a strong educational basis for persons desiring careers in the field of personal financial planning. Two categories of students are admitted: Matriculated students who have been admitted to an upper division College of Business Administration major and nonmatriculated students who work in the financial services industry may take the courses on a space-available basis.
This certificate is a program registered with the International Board of Certified Financial Planners.
Prerequisites to the program include Finance 140; Accountancy 201; Economics 101, 102; and Mathematics 119. (15 units.)
The certificate requires 23 units to include Accountancy 404, Finance 323, 327,421, 445, 521, and 589.
The adviser for the certificate is Dr. Thomas M.D. Warschauer, Department of Finance. All course units may be used for business majors where programmatically specified. Courses in the certificate may not be counted toward the minor.
140. Legal Environment of Business (3) I, II
Business legal system, sources of law, social and ethical influences, judicial and administrative systems, contracts, torts, bankruptcy, agency, business organizations, securities regulation, regulation of property, and protection of intellectual property interests.
317. Individual Investing (3)
Prerequisite: Upper division standing.
Investment alternatives. Financial institutions related to individual investing. Consumer protection and investing. Tax considerations. Building portfolios. Not open to business majors.
321. Managerial Economics (3) I, II
Prerequisite: Completion of lower division course requirements in
major or minor.
Role of economic analysis in management decisions. Study of demand, cost, supply theories from a business viewpoint. Emphasis on managerial decision making.
323. Fundamentals of Finance (3) I, II
Prerequisite: Approved upper division business major, business
minor, or another major approved by the College of Business Administration. Proof of completion of prerequisite required: Change of
major form or other evidence of acceptable major code.
Objectives of financial management. Financing the business enterprise. Internal financial management. Introduction to the cost of capital, valuation, dividend policy, leverage, international finance, and the techniques of present value and its applications. Sources of capital.
325. Intermediate Finance (4) I, II
Prerequisite: Finance 323 with minimum grade of C.
Capital expenditure decision process. Measuring and evaluating benefits and costs. Cost of capital and the evaluation process. Capital rationing problems. Risk and uncertainty in decision process. Agency theory, option pricing, and arbitrage pricing in decision process.
326. Financial Institutions Management (3)
Prerequisite: Finance 323 with minimum grade of C.
Management of financial institutions including savings and loan associations, mutual savings banks, credit unions, private pension plans, brokerage houses, investment companies, consumer credit institutions, federal credit agencies, and commercial banks. Emphasis on internal financial management of these institutions.
327. Investments (3) I, II
Prerequisite: Finance 323.
Measures of risk and return. Methods of security analysis, valuation, and capital asset pricing model. Portfolio theory and management; stocks, bonds, options, and futures; hedging; mutual funds and partnerships; and investment taxation.
329. International Business Finance (3) I, II
Prerequisite: Finance 323.
Foreign exchange markets and instruments; international financial institutions; trade and balance of payments; exchange rate behavior and currency-risk hedging: cross-border investment; applications to management of international business.
331. Real Estate Essentials (3) I, II
Prerequisite: Completion of lower division course requirements in
business major or minor.
Fundamental operations of the real estate market; principles of real property valuation, financing, law, investment, brokerage, management, and development.
333. Law of Real Property (3) II
Prerequisite: Finance 331.
Legal theory and practice of estates in land; landlord and tenant relationships; land transactions; mortgages and trust deeds; easements; land use; ownership rights in land; environmental law.
335. Land Markets and Real Estate Analysis (3) I, II
Prerequisite: Finance 331.
Theory and analysis of land utilization. Location analysis and determinants of land use patterns. Real estate market behavior and economic growth. Basic real estate investment analysis. Public controls and policies affecting land markets.
340. Advanced Business Law (3)
Prerequisites: Finance 140, approved upper division business
major, business minor, or other approved major.
Law of contracts, sales, commercial paper, secured transactions, bankruptcy, suretyship, agency, organizations, property, insurance, trusts and estates, securities regulations, and professional liability.
421. Portfolio Management and Security Analysis (3)
Prerequisite: Finance 327.
Market efficiency. Risk and utility analysis. Portfolio theory. Security analysis under modern investment theory. Advanced debt management and options techniques. Financial options and futures. Asset allocation and performance evaluation. Limited partnership investment analysis.
423. Financial Analysis and Management (4) I, II
Prerequisites: Finance 321 and 325. Strongly recommended:
Accountancy 326.
Integration of various aspects of finance, application of financial theory. Financial decision making in the firm. Case study.
425. Business Forecasting (3)
Prerequisite: Finance 323.
Business fluctuations; forecasting, and related problems confronting the business firm; forecasting techniques; specific forecasts. The use of forecasts in the firm.
431. Real Estate Finance (3) I
Prerequisite: Finance 331.
Methods of financing real estate; sources of funds; governmental financial agencies; feasibility analysis for various types of properties.
433. Theory of Real Property Value (3) II
Prerequisite: Finance 331.
Introduction to theories of real property value. Techniques of value determination. Data analysis techniques.
435. Real Estate Investment Analysis (3) I, II
Prerequisites: Finance 335 and Finance 431 or 433.
Theories and methods of investment analysis applied to real estate. Integration of various aspects of real estate from the investors perspective. Use of computer models for investment decision making.
445. Estate Planning (3) I
Prerequisite: Finance 323.
Fundamentals of estate planning, social and family implications of federal/state taxation of transfers of wealth by gift or at death. Study of trusts, conservatorships, guardianship and postmortem planning. How planning is affected by business assets, employee benefits, and insurance.
496. Selected Topics in Finance (1-4)
Prerequisite: Consent of department chair.
Selected areas of concern in finance. See Class Schedule for specific content. May be repeated with new content with consent of department chair. Limit of nine units of any combination of 296, 496, 596 courses applicable to a bachelor's degree. Maximum credit six units.
498. Investigation and Report (1-3) I, II
Prerequisites: Senior standing and consent of instructor.
A comprehensive and original study of a problem connected with finance under the direction of one or more members of the finance staff. May be repeated with new content. Maximum credit six units.
499. Special Study (1-3)
Prerequisite: Consent of instructor.
Individual study. Maximum credit six units.
521. Individual Insurance Management (4) II
Prerequisites: Undergraduate: Completion of lower division
requirements for the major. Graduate: Completion of prerequisite core.
Economic, legal, social and ethical considerations of individual, business and group insurance including life, health, property, liability and social insurance. Risk exposure and policy analysis. Employee benefit and pension planning including regulation and taxation issues. Not open to students with credit in Finance 525.
589. Personal Financial Planning (3) I
Prerequisite: Finance 323.
Financial planning process including data gathering, cash flow and debt considerations, goal programming (including retirement and education funding), integration, plan formulation, and implementation. Practice management considerations including establishment of ethical and legal, client and professional relationships. Not open to students with credit in Finance 525.
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