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DOCUMENTS OF THE GENERAL FACULTY

PROPOSED CHANGES TO THE DEGREE REQUIREMENTS FOR THE BACHELOR OF BUSINESS ADMINISTRATION WITH A MAJOR IN FINANCE
IN THE RED MCCOMBS SCHOOL OF BUSINESS CHAPTER OF
THE UNDERGRADUATE CATALOG, 2004-2006

Dean George Gau of the Red McCombs School of Business has filed with the secretary of the Faculty Council the following proposed changes to the degree requirements in the Department of Finance in the Red McCombs School of Business chapter in The Undergraduate Catalog, 2004-2006. The faculty of the school approved the proposed changes on November 5, 2003. The dean approved the changes and submitted them to the secretary on November 7, 2003. The secretary has classified this proposal as legislation of exclusive application and primary interest to a single college or school.

The edited proposal was received from the Office of Official Publications on December 5, 2003, and was sent to the Committee on Undergraduate Degree Program Review from the Office of the General Faculty on December 11, 2003. The committee forwarded the proposed changes to the Office of the General Faculty on February 26, 2004, recommending approval. The authority to grant final approval on behalf of the General Faculty resides with the Faculty Council.

If no objection is filed with the Office of the General Faculty by the date specified below, the legislation will be held to have been approved by the Faculty Council. If objection is filed within the prescribed period, the legislation will be presented to the Faculty Council at its next meeting. The objection, with reasons, must be signed by a member of the Faculty Council.

To be counted, a protest must be received in the Office of the General Faculty by noon on March 5, 2004.


<Signed>

Sue Alexander Greninger, Secretary
The Faculty Council


This legislation was posted on the Faculty Council Web site (http://www.utexas.edu/faculty/council/) on February 27, 2004. Paper copies are available on request from the Office of the General Faculty, FAC 22, F9500.

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PROPOSED CHANGES TO THE DEGREE REQUIREMENTS FOR THE BACHELOR OF BUSINESS ADMINISTRATION WITH A MAJOR IN FINANCE
IN THE RED MCCOMBS SCHOOL OF BUSINESS CHAPTER OF
THE UNDERGRADUATE CATALOG, 2004-2006

On page 52, under the heading DEGREES, in the PROGRAM DEGREE REQUIREMENTS section, in the Red McCombs School of Business chapter of The Undergraduate Catalog, 2002-2004, make the following changes:


FINANCE

[An adequate knowledge of the structure of our financial system and of the tools and techniques of finance is essential to sound business management. In the market economy, a variety of financial institutions are instrumental in the orderly processes of production, distribution, and consumption. This program offers students an opportunity to study the finance function in the business firm and the financial system.

Students majoring in finance may develop a concentration in real estate or in risk management. The real estate concentration is intended to prepare students for positions in real estate commercial brokerage and appraisal, mortgage banking, loan underwriting, real estate development and investment, and property management. Courses recommended for this concentration are Real Estate 358, 376G, and 378K. Students are also encouraged to take Legal Environment of Business 363 as an elective.

Students concentrating in risk management may pursue careers in risk management, health care management, employee benefits, pensions, and such areas of the insurance business as investments, branch and agency management, underwriting, financial management, loss control, claims adjustment, and pricing or actuarial science. Courses recommended for this concentration are Risk Management 357E, 369K, and 377.
]

Finance is the study of resource allocation—the process, markets, institutions, and instruments that provide for the transfer of money and wealth. The finance degree program offers students an opportunity to study the finance function in the business firm, the financial services firm, and the financial system.

The finance major presents students with the theoretical framework and analytical tools and techniques to handle a variety of finance and business functions. Students may choose one of five tracks: corporate finance, energy finance, investment banking, financial markets/banking, or real estate; students who do not wish to specialize may choose the general finance program.

Corporate finance courses are designed to prepare students for careers as associates of corporate treasury departments, as corporate financial analysts, and as management consultants. Energy finance courses are designed to prepare students for positions in project financing, valuation, and risk management in the energy sector. Investment banking courses are designed to give students a background suitable for starting positions as financial analysts with investment funds, investment banks, and other financial institutions. Financial markets/banking courses are designed to prepare students for a variety of financial institution–related careers, such as lending officer and financial analyst. Real estate courses are designed to give students a broad background in valuing and managing real estate; the track is intended to prepare students for positions in real estate commercial brokerage and appraisal, mortgage banking, loan underwriting, real estate development and investment, and property management.

Finance majors may specialize further by completing the Financial Analyst Program (FAP). This one-year program allows outstanding business students to work closely with finance faculty members and industry professionals to develop their skills and experience as analysts. The program may be combined with any of the finance options. Information about the FAP is available in the Department of Finance and at http://www.mccombs.utexas.edu/AIMCenter/FAPMain.htm.

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The requirements of this program are

1. The Bachelor of Business Administration degree requirements on pages 47-49.
[2. Finance 377 (Topic 3: Security Analysis), 377 (Topic 4: Financial Analysis), or another approved course.]
[3.] 2. Finance 367 and 370.
[4. Six semester hours of upper-division coursework in finance, real estate, or risk management. The following courses may not be counted toward this requirement: Finance 354, 357, 367, 370,377(Topic 3: Security Analysis), 377 (Topic 4: Financial Analysis).]
3. Completion of one of the finance tracks listed below.
[5.] 4. Additional elective coursework, if necessary, to provide a total of at least [121] 120 semester hours.


Corporate Finance

Accounting 326, Financial Accounting--Intermediate--required

Three semester hours of accounting chosen from the following:

Accounting 327, Financial Statement Analysis
Accounting 329, Managerial Accounting and Control
Accounting 362, Auditing and Control
Accounting 364, Fundamentals of Taxation

Finance 374C, Financial Planning and Policy for Large Corporations--required

Six semester hours of finance chosen from the following:

Finance 366P, Finance Practicum*
Finance 371M, Money and Capital Markets
Finance 376, International Finance
Finance 377, Topic 1: Theory and Application
Finance 377, Topic 2: Financial Risk Management
Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis


Energy Finance

Accounting 326, Financial Accounting--Intermediate--required
Finance 374C, Financial Planning and Policy for Large Corporations--required
Finance 377, Topic 5: Special Issues in Finance--required

Six semester hours of finance chosen from the following:

Finance 366P, Finance Practicum*
Finance 371M, Money and Capital Markets
Finance 374S, Entrepreneurial Finance
Finance 375F, Banking and Financial Intermediation
Finance 376, International Finance
Finance 377, Topic 1: Theory and Application
Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis


Investment Banking

Accounting 326, Financial Accounting--Intermediate--required
Finance 377, Topic 1: Theory and Application--required

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Nine semester hours of finance chosen from the following:1

Finance 366P, Finance Practicum*
Finance 371M, Money and Capital Markets
Finance 374C, Financial Planning and Policy for Large Corporations
Finance 374S, Entrepreneurial Finance
Finance 375F, Banking and Financial Intermediation
Finance 376, International Finance
Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis


Financial Markets/Banking

Accounting 326, Financial Accounting--Intermediate--required
Finance 354, Money, Banking, and Economic Conditions, or 371M, Money and Capital Markets--required

Nine semester hours of finance chosen from the following:
1

Finance 366P, Finance Practicum*
Finance 374C, Financial Planning and Policy for Large Corporations
Finance 374S, Entrepreneurial Finance
Finance 375F, Banking and Financial Intermediation
Finance 376, International Finance
Finance 377, Topic 1: Theory and Application
Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis


General Finance

Nine semester hours of upper-division coursework in finance, real estate, or risk management. The following courses may not be used to fulfill this requirement: Finance 353, 357, 367, 370. Only one of the following courses may be counted: Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis.

A three-semester-hours business elective


Real Estate

Finance 354, Money, Banking, and Economic Conditions, or 371M, Money and Capital Markets--required
Finance 377, Topic 3: Security Analysis,* or 377, Topic 4: Financial Analysis--required
Six semester hours of real estate
A three-semester-hours business elective

footnote:
* Registration in this course is restricted to students in the Financial Analyst Program.


RATIONALE: Many corporate recruiters look for areas of specialization within finance rather than a general finance program. The Finance Department is reorganizing the major to help the students be better prepared for employment and to help recruiters in selecting students with the specific skills and knowledge needed for their companies. The structure of the major will be similar in design to the MBA program.


1On April 14, 2004, the Red McCombs School of Business requested a change from six semester hours to nine semester hours. Approved by Vice Provost Lucia Gilbert on April 22, 2004.