International Technological University

FINN 918 Financial Institutions Weekend Course

Instructor: Professor Hiram Willis, Hiram.Willis@Earthlink.net 408-843-6176 Office hours: by appointment, see me to schedule a meeting(s) For your convenience, with advance, I am available to meet on weekends. Foundations of Financial Markets and Institutions, 4th Edition, Fabozzi, Modigliani, and Jones, Prentice Hall, 2010, ISBN 13: 978-0-13613531-9 ISBN 10: 0-13-613531-5

Textbook:

Supplemental Textbook (not required but recommended reading): Corporate Finance, Copyright 2011, 2007 Second Edition, Jonathan Berk and Peter DeMarzo, Prentice Hall, 2008, ISBN 13:978-0-13-608943-8

Prerequisite: FINN 933 or equivalent This course provides an overview of the basic roles in the theory of corporate finance and financial institutions operating in todays economic markets. The topics include capital structure, distribution policy, financial intermediation, incomplete financial contracting, initial and seasoned public offerings, market for corporate control, corporate reorganization and bankruptcy, financing in imperfect markets, and security design under adverse selection. Course Description Financial Institutions brings together the academic rigor and a practitioners perspectives on Financial Markets and Financial Institutions, as well as Corporate Financial functions and practices. We will draw on a combination of Finance research journals, Internet articles, as well as other international Finance textbooks (i. e., Derivatives Markets: McDonald; The Initial Public Offering: Bowne, Finance Strategies, William E. Fruhan, and Financial Derivatives: Risk Takers by John Marthinsen; Multinational Business Finance, by Eiteman, Stonehill & Moffett),) to further supplement our understanding of the Financial Markets and Institutions. Our course utilizes several contemporary journal publications (e.g., Wall Street Journal, Investment Journals, Journal for Social, Political and Economical Studies, Review of Finance, Journal of Economic Literature and the Economist magazine) to build a rich class discussion on the topics of Financial Markets & Institutions, as well as Financial objectives and strategies impact on international business expansion. Page 1 of 5

An important objective of this course is to have fun building a framework in capital structure, distribution, policy, and financing in global markets that you can carry with you throughout your professional careers. We refresh the basic framework of financial concepts and theories. With our framework evolving throughout the entire course, we continually tune it with asset valuation and financial value-creation concepts, models and applications, including an examination of the Derivatives markets. We will use selected Chapter Problems to solve and discuss concepts, as well as validate our learned principles for that particular topic. Course Learning Outcomes Finance 918 focuses on learning of Financial Markets and Institutions operations, as well as their mission, policies, objectives and strategies. Time permitting I will endeavor to integrate an international perspective of the markets and institutions. At the completion of this Course, you should be able to: Understand the International Big-Picture of what Finance Markets and Financial Institutions are and how the function on the stage of our global economy; Know how to apply the basic Finance concepts, evaluation models and analytical techniques in both the academic and practice environments. Be familiar with Financial Institutions and Market assessments and processes in internationally competitive environments. Understanding the relationships between Financial Markets and Institutions and the development of the Business Plan, Finance Plan and Product/Service Development Plans. Understand how the function of Finance can drive internal development of and influence an institutions globalization strategy. Know how Finance functions are brought together to influence institutional growth, strategic business direction, and value-creation, while mitigating risks.

Course Student Learning Objectives (CSLOs) Please note on the first day within the first hour of Class I will hand out and review with you a separate sheet with a specific detailed Course Student Leaning Objectives (CSLOs) tied to the Chapter materials covered in Class. An important part of your grade requires your written responses to these CSLOs. Course Requirements: Class participation: The entire class learns from each other as well as from the textbook, the readings, as well as the Instructor. A classmates observation may be just the key you need to fully grasp a concept being discussed. Given the highly intensive nature of the course, a missed class session will hurt the entire class, in addition to placing you at an information disadvantage. A missed class will lower your Class Contribution grade for that night. Further, we want to Page 2 of 5

acknowledge those who do contribute to the Class learning. I will look for evidence of you having read the textbook material required for the Session. Grade Assigned Weights: This course is quick (just 3 weekends) and intensive. I will not gloss over your questions. I will find the time to answer all of them and working with you to increase your understanding of course materials and subjects. Below, I have included a section for textbook readings by class session. We will endeavor to move to the pre-planned pace articulated below. However, I do reserve the right to deviate from this Syllabus based on the learning tempo of the class. Course Student Learning Objective (CSLO) & Participation Midterm Final Exam Student Financial Articles Discussions 25% Points 25% (Points Deducted for Late Exams) 25% (Points Deducted for Late Exams) 25% Points

Academic Integrity: International Technological University expects that students will do their own work and that their quizzes, tests, examinations, course work, essays, projects, and all other assignments honestly reflect their own learning and knowledge in the course. Attendance Policy: Participation is essential part of the learning process. You are invited to participate in each class to share your question(s), comments, and thoughts about the topic(s) being discussed. Class Schedule Summary: We have 7 CSLO's and each CSLO's contains 4 questions. These will be handed out and collected by the Course Teaching Assistant. Class timings for all weekend classes: 9:00AM 5:00PM Sat 4 && Sun 5: Session 1 A & B Sat 11 && Sun 12: Session 2 A & B Sat 18 && Sun 19: Session 3 A & B Session 1: A Saturday Lesson 1: Syllabus and Course Objectives Review; General Questions Discussion Group Format, We Will Discuss in Class and Exam format. The Corporation and Theory of Finance Overview Page 3 of 5

Corporate Formations Ownership & Control The Stock & Bond Markets

Lesson 2: Chapter 3: Depository Institutions, Federal Reserve, and Monetary Policy Lesson 3: Chapter 4: The U.S. Federal Reserve and the Creation of Money Chapter 5: Monetary Policy Session 1B: Sunday Lesson 4: Chapter 7: Investment Companies and ETFs Lesson 5: Chapter 9: Properties and Pricing of Financial Assets Chapter 10: Level and Structure of Interest Rates Session 2 A: Saturday Lesson 6: Chapter 12: Risk/Return and Asset Pricing Models CAPM, Black-Scholes, Other Models Lesson 7: Chapter 13: Primary Markets and Underwriting of Securities Chapter 14: Secondary Markets Mid Term Examination Handed Out Due Next Week/Meeting Session 2 B: Sunday Lesson 8: Chapter 15: Treasury and Agency Securities Chapter 16 Municipal Securities Lesson 9: Chapter 19: Markets for Corporate Senior Instruments: I Session 3 A: Saturday Hand in Midterm. Lesson 11: Chapter 25: Market for Asset-Backed Securities Chapter 26: Financial Futures Markets IPO Markets & Going Public Lesson 12: Chapter 27: Options Markets Functions and Objectives Chapter 28 Pricing of Future and Options Contracts Session 3 B: Sunday Lesson 13: Chapter 29: The Application of Futures and Options Contracts, Page 4 of 5

Chapter 30: OTC Interest Rates Derivatives: Forward Agreements, Swaps, Caps and Floors Lesson 14: Chapter 31: Market for Credit Risk Transfer Vehicles: Credit Derivatives and Collateralized Debt Obligations Lesson 15: Chapter 32: The Market for Foreign Exchange and Risk Controls Instruments

Final Examination Due 1 Week After Last Class.

A word about Professor Hiram Willis:
Hiram Willis is both an INC 500 President (#401, 1996) and New York Fortune 50 President (#13, 1997). With past residences in Japan (Shin Yokohama), UK (Reading) and Germany (Frankfurt & Munich), his background includes: CEO and President of Visualize Video Corporation (A Taiwan Company) and Voice Technologies Groups, Inc., as well as GM for Cygron International USA (Budapest), and Cymbolic Sciences International, Inc. (Geneva, Switzerland). He is a Senior Business Advisor to major US domestic and international companies in the Software, Networks, Financial Strategies and Mobile Communications markets, as well as International Venture Capital firms, M&As for Transnational Corporations. Currently, he is the Managing Director for an international asset firm, as well as on the Board of Directors for emerging growth firms. Mr. Willis served on the adjunct faculty staff for the Fisher Graduate School of International Business, Monterey Institute of International Studies (Monterey, Ca.), as well as San Jose State University College of Business Center for Entrepreneurship, together with Menlo College and The Graduate School of Economics and Business, Saint Marys College. He is and invited speaker, published and lectures on International Business Planning and Finance Strategies for Early Stage & Entrepreneurial Companies; Strategic Finance the Innovations that Builds Corporate Equity Value; as well as Business and Asset Valuations Techniques. With current PhD work in the Globalization of Socially Responsible International Financial Derivatives (Walden University), Mr. Willis holds a MBA (Finance & Marketing) from the Peter F. Drucker Graduate School of Management, Claremont Graduate University with post-graduate Advanced MBA work in Finance. Additionally, he holds a Bachelor in Electrical Engineering from the University of Southern California, School of Engineering, and Electro-Physics Department, where he received the Archimedes Engineering Award in 1977. His background includes Financial Securities in: equities, derivatives, partnerships and debenture structuring, as well as balance sheet restructuring, together with professional awards from IEEE Society, Society of Optical Engineering, SME, American Financial Association, and Inc 500 President, and New York Fortune 50 President Awards.

Professor Hiram Willis, Hiram.Willis@Earthlink.net 408-843-6176 Office hours: by appointment, see me to schedule a meeting(s) For your convenience, with advance, I am available to meet on weekends.

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