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DOCUMENTS OF THE GENERAL FACULTY

PROPOSED CHANGES TO THE
BACHELOR OF BUSINESS ADMINISTRATION IN FINANCE IN
THE RED MCCOMBS SCHOOL OF BUSINESS CHAPTER OF
THE UNDERGRADUATE CATALOG 2006-2008



Dean George Gau of the Red McCombs School of Business has filed with the secretary of the Faculty Council the following changes to the finance degree in the Undergraduate Catalog, 2006-2008. The faculty of the school approved the proposed changes on April 29, 2005. The dean approved the proposed changes on May 4, 2005, and submitted the changes to the secretary on October 27, 2005. 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 November 1, 2005, and was sent to the Committee on Undergraduate Degree Program Review from the Office of the General Faculty on November 10, 2005. The committee forwarded the proposed changes to the Office of the General Faculty on November 18, 2005, 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 December 2, 2005.

<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 November 21, 2005. Paper copies are available on request from the Office of the General Faculty, WMB 2.102, F9500.

4239


PROPOSED CHANGES TO THE
BACHELOR OF BUSINESS ADMINISTRATION IN FINANCE IN
THE RED MCCOMBS SCHOOL OF BUSINESS CHAPTER OF
THE UNDERGRADUATE CATALOG 2006-2008



On page 54, under the heading DEGREES, in the section PROGRAM DEGREE REQUIREMENTS, in the Red McCombs School of Business chapter of the Undergraduate Catalog, 2004-2006, make the following changes:


FINANCE

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 and a half-year long program allows competitively selected 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.

The requirements of this program are

1. The Bachelor of Business Administration degree requirements on pages 49-50.

2. Finance 367 and 370.

3. One of the following:
A. Corporate Finance and Investment Banking
1. Accounting 326 and Finance 374C.
2. One of the following courses: Accounting 327, 329, 362, or 364.
3. Two of the following courses: Finance 366P, 371M, 372, 373, 376, 377 (Topic 1: Theory and Application), either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).6

B. Energy Finance
1. Accounting 326, Finance 374C, and Finance 377 (Topic 5: [Special Issues in Finance] Energy Financial Risk Management).
2. Two of the following courses: Finance 366P, 371M, 372, 373, 374S, 375F, 376,377 (Topic 1: Theory and Application), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial



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  Analysis).6
C. Investment [Banking] Management
1. Accounting 326 and Finance 377 (Topic 1: Theory and Application).
2. Three of the following courses: Finance 366P, 371M, 372, 373, 374C, 374S, 375F, 376, either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).6
D. Financial Markets/Banking
1. Accounting 326, and Finance 354 or 371M.
2. Three of the following courses: Finance 354 or 371M (whichever course is not taken to fulfill requirement 1), 366P, 372, 373, 374C, 374S, 375F, 376, 377 (Topic 1: Theory and Application), either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).6
E. General Finance
1. Fifteen [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, and 370. Finance 377 (Topic 2: Financial Risk Management) and 377 (Topic 5: Energy Financial Risk Management) may not both be used. Finance 377 (Topic 3: Security Analysis) and 377 (Topic 4: Financial Analysis) may not both be used; topic 3 is open only to students in the Financial Analyst Program.
[2. A three- semester-hour business elective.]
2. Only one independent study course may be counted toward the general finance option.
F. Real Estate
1. Finance 354 or 371M.
2. Finance 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).6
3. Six semester hours of coursework in real estate.
4. A three-semester-hour finance [business] elective.
5. Only one independent study course may be counted toward the real estate option.

4. Additional elective coursework, if necessary, to provide a total of at least 120 semester hours.


6. Only students in the Financial Analyst Program may register for Finance 366P and Finance 377 (Topic 3: Security Analysis).


RATIONALE:
Titles are being changed in 3 A and C to more accurately reflect the nature of the courses in the tracks.

Corrections to 04-06 catalog:
Courses being added were inadvertently left out of the original legislation for the Finance tracks.

Finance 372 and 373 are new courses being added to the options.

All tracks were to have the same number of required finance area courses. Adding two additional finance/real estate/risk management courses and deleting the business elective to the General Finance degree and changing the business elective to a finance elective in the Real Estate track corrects this inconsistency and makes the General Finance and Real Estate degrees stronger and more rigorous.

Adding a statement regarding independent study courses under the General Finance and Real Estate tracks is for clarification of the departmental policy.