1. Finance Department’s X220 Presentation Prof. Craig Holden (cholden@indiana.edu) Chair, Finance Depart. Undergraduate Committee Prof. Dan Greiner (dgreiner@indiana.edu) Finance I-Core Instructor Finance Department Web Site: www.kelley.iu.edu/finance

2. Careers in Finance Major Areas: Major Areas: 1. Corporate Finance 2. Investments 3. Banking 4. International Specialized Areas: Specialized Areas:  Financial Consulting  Investment Banking  Real Estate

3. Major Areas: (1.) Commercial Banking Credit Credit  analyst  loan officer Branch Manager Branch Manager Relationship Banking Relationship Banking Capital Markets Capital Markets

4. (2.) Corporate Finance Line Position Line Position  plant management/planning Staff Position Staff Position  corporate management/planning Treasury Treasury  risk management  capital acquisition  mergers and acquisitions

5. (3.) Investments Sales Sales Trading Trading Research Research  investment analysis  product development

6. (4.) International Working outside of the U.S. or in the U.S. arm of a multinational corporation Working outside of the U.S. or in the U.S. arm of a multinational corporation International Financial Analysis International Financial Analysis International Investments International Investments International Banking International Banking

7. Specialized Areas: Financial Consulting Providing advising services Providing advising services  business valuation  litigation support  capital acquisition  restructuring Employers Employers  Big-5 accounting firms  Management consulting firms

8. Investment Banking two-year analyst position two-year analyst position very competitive (i.e., it takes a high GPA) very competitive (i.e., it takes a high GPA)

9. Real Estate Real estate development Real estate development Corporate Corporate Sales Sales Financial institutions Financial institutions

10. Placement Information Finance students have approximately 12 interviews each in the BPO Finance students have approximately 12 interviews each in the BPO Although most find jobs through the BPO, a significant number find them through networking. Although most find jobs through the BPO, a significant number find them through networking. 2000 graduates average starting salary = $39,557 Survey suggests it grows at 7%/year  $48,000 after 3 years  $55,000 after 5 years Some very high salaries

11. The New “Finance Core” What: Effective Fall 2001, Finance Core = What: Effective Fall 2001, Finance Core =  F303 Intermediate Investments  F305 Intermediate Corporate Finance  Linked together for non-honors students  Honors students take F304 and F305  On Finance Tract: number of electives 4  3  On Real Estate Tract: A311 required  elective  Prerequisites for all 400-level finance electives:  (either F303 or F304) and F305

12. Why Increase corporate finance content by requiring a corporate finance course (F305) Increase corporate finance content by requiring a corporate finance course (F305) Increase spreadsheet modeling treatment in both the investments course (F303) and the corporate finance course (F305) Increase spreadsheet modeling treatment in both the investments course (F303) and the corporate finance course (F305)

13. Current Finance Major New Finance Major 9 hours of accounting 9 hours of accounting 3 hours of F303 3 hours of F303 12 hours of finance electives (4 courses) 12 hours of finance electives (4 courses)------------------------------ 24 hours total 24 hours total 9 hours of accounting 9 hours of accounting 6 hours of F303 / F305 6 hours of F303 / F305 9 hours of finance electives (3 courses) 9 hours of finance electives (3 courses)------------------------------ 24 hours total 24 hours total

14. Finance Electives 1. Corporate Finance  F307 - Working Capital Management  F402 - Corporate Financial Strategy  F408 – Real Options and Strategic Capital Investment (new) 2. Investments  F335 - Security Trading and Market Making  F420 - Fixed Income and Equity Investing  F421 - Derivative Securities and Corporate Risk Management

15. Finance Electives 3. Commercial Banking  G345 - Money, Banking, and Capital Markets  F446 - Banking and Financial Intermediation 4. International  F494 - International Finance 5. Entrepreneurial Elective  F317 – Venture Capital and Entrepreneurial Finance (new) 6. Real Estate Elective  R305 – Introduction to Real Estate Analysis (new)

16. Investment Banking Workshop Limited to 25 students admitted as Juniors Limited to 25 students admitted as Juniors  Scholastic achievement  Interest in industry and leadership potential Speaker series Speaker series New York and Chicago trips New York and Chicago trips F428 - Industry background and financial modeling F428 - Industry background and financial modeling F429 - Project/deal development F429 - Project/deal development

17. Real Estate Track Also 24 credit hours Also 24 credit hours Take three specialized real estate courses Take three specialized real estate courses  Introduction to Real Estate Analysis (R305)  Real Estate Appraisals (R440)  Real Estate Finance and Investment Analysis (R443)

18. Extracurricular activities Finance Club Finance Club  Investment Banking Group  www.indiana.edu/~finance/ Stock Market Club Stock Market Club  www.indiana.edu/~stock/

19. Panel Members Betsy Bird – Motorola, Inc. Betsy Bird – Motorola, Inc. Lisa Graf – Procter & Gamble Lisa Graf – Procter & Gamble Darcie Lehmann – Deloitte & Touche LLP Darcie Lehmann – Deloitte & Touche LLP Travis Perry – PPG Industries Travis Perry – PPG Industries Ted Phillips – Arthur Anderson LLP Ted Phillips – Arthur Anderson LLP Sean Triplett – General Electric Company Sean Triplett – General Electric Company Richard Vonderhaar – Goldman, Sachs & Co. Richard Vonderhaar – Goldman, Sachs & Co.