Program Description:
Finance is the lifeblood of the business world. Raw materials aren’t processed, factories aren’t built, goods aren’t shipped and customers aren’t satisfied unless the money that makes it happen is present at the right time and place. The finance industry is large, diverse and incredibly important. People in finance careers are the people who create, broker and track nearly every monetary transaction. How do you choose what to invest in? How can companies make the best financial decisions when conditions are constantly changing? These are essential questions in the finance industry. Because most organizations realize the value in effectively managing their assets, there will always be work for financial planners, analysts, managers and executives. This concentration focuses on corporate finance.
Learning Objectives:
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Apply financial management concepts and tools to investment decisions.
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Evaluate the corporate governance structure of firms and examine the interactions between firm management, financial markets and stakeholders.
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Appraise the risk profile of firms; specifically, estimate the costs of capital, including debt and equity capital, using financial data.
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Demonstrate an understanding of the theories and practices of corporate finance, investment, and portfolio management.
Careers:
The U.S. Bureau of Labor Statistics’ 2016-17 Occupational Outlook Handbook states that employment of financial analysts should grow by 12 percent through 2024. Depending on the area of finance one chooses, median salaries will vary:
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Actuary
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$96,700
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Financial Manager
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$115,320
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Personal Financial Advisor
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$81,060
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Financial Analyst
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$78,620
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The three main avenues for job opportunities in the finance industry are (1) personal, (2) corporate, and (3) public.
(1) In personal finance, decisions are made about paying for education, financing goods such as real estate and vehicles, buying health and property insurance, and investing and saving for retirement. According to the Financial Planning Standards Board, the six key areas of personal financial planning are:
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Financial position: understanding what resources are available by looking at the net worth and cash flow of a household
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Adequate protection: the analysis of how to protect a household from unforeseen risks
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Tax planning
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Investment and accumulation goals
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Retirement planning
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Estate planning
(2) Corporate finance is about providing the funds for business activities. Finance managers:
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Balance risk and profitability
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Study and forecast economic trends
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Review company reports and suggest efficiencies
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Work to maximize stock value
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Manage funds, including choosing a portfolio of investments
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Apply principles of financial risk management
(3) Public finance is concerned with the financial dealings of states, as well as related public entities such as school districts or government agencies.
Some typical arenas for working in finance include in actuary (insurance), corporate finance or real estate, financial planning, investment banking and money management. Many of the skills and abilities needed for each area overlap and can provide additional employment opportunities.
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