| Course Objectives: |
ENM 3001 is an introduction to the basic concepts and theories of financial management. It starts with introducing the financial statements, pro-forma statements and the analysis of these statements including ratio analysis, DuPont analysis and leverage analysis. It introduces the fundamentals of time value of money (TVM) and risk-return relationship. Upon the introduction of TVM and risk return relationship the course covers the subjects of valuation, cash flow analysis and capital budgeting. Throughout the course all subjects are reviewed through comprehensive cases that aims to show the students how these principals applies in the real world. |
| Course Content: |
Introduction to Foundations of Finance, Evaluating a Firm’s Financial Performance (Ratio analysis and Leverage), Understanding Financial Statements and Cash Flows, Short Term Assets Management, Time Value of Money, Evaluation of Stocks and Bonds, Risk and Return, Capital Budgeting Techniques, Capital Budgeting Decisions, Leverage and Break Even Analysis |
| Week |
Subject |
Related Preparation |
| 1) |
This chapter lays a foundation for what will follow. First, it focuses on the goal of the firm, followed by the five principles that form the foundations of financial management and the role of finance in business. The chapter then reviews the legal forms of business organization and discusses the tax implications relating to financial decisions. Finally, the chapter discusses the new role multinational firm and its role in finance. |
Yok |
| 1) |
Capital budgeting involves the decision-making process with respect to investment in fixed assets; specifically, it involves measuring the incremental cash flows associated with investment proposals and evaluating the attractiveness of these cash flows relative to the project’s cost. This chapter focuses on the estimation of those cash flows based on various decision criteria, and how to adjust for the riskiness of a given project or combination of projects. |
N/A |
| 2) |
Financial analysis can be defined as the process of assessing the financial condition of a firm. The principal analytical tool of the financial analyst is the financial ratio. In this chapter, we provide a set of key financial ratios and a discussion of their effective use. |
Yok |
| 3) |
In this chapter, we review the contents and meaning of a firm’s income statement and balance sheet. We also look very carefully at how to compute a firm’s cash flows. |
Yok |
| 4) |
This chapter is divided into two sections. The first section includes an overview of the role played by forecasting in the firm’s planning process. The second section focuses on the construction of detailed financial plans, including budgets and pro forma financial statements for future periods of the firm’s operations. A budget is a forecast of future events and provides the basis for taking corrective action and can also be used for performance evaluation. The cash budget and pro forma financial statements provide the necessary information to determine estimates of future financing requirements of the firm. These estimates are the key elements in our discussion of financial planning and budgeting |
Yok |
| 5) |
This chapter is divided into two sections. The first section includes an overview of the role played by forecasting in the firm’s planning process. The second section focuses on the construction of detailed financial plans, including budgets and pro forma financial statements for future periods of the firm’s operations. A budget is a forecast of future events and provides the basis for taking corrective action and can also be used for performance evaluation. The cash budget and pro forma financial statements provide the necessary information to determine estimates of future financing requirements of the firm. These estimates are the key elements in our discussion of financial planning and budgeting |
Yok |
| 6) |
Yok |
Yok |
| 7) |
In this chapter, the concept of the time value of money is introduced; that is, a dollar today is worth more than a dollar received a year from now. If we are to compare projects and financial strategies logically, we must either move all dollar flows back to the present or out to some common future date. |
Yok |
| 8) |
We are specifically concerned with bonds. We also look at the concept of the bondholder's expected rate of return on an investment.
We are specifically concerned with valuing preferred stock and common stock. We also look at the concept of a stockholder’s expected rate of return on an investment. |
N/A |
| 9) |
In this chapter, we examine the factors that determine rates of return (discount rates) in the capital markets. We are particularly interested in the relationship between risk and rates of return. We look at risk both in terms of the riskiness of an individual security and that of a portfolio of securities. |
N/A |
| 10) |
Capital budgeting involves the decision-making process with respect to investment in fixed assets; specifically, it involves measuring the incremental cash flows associated with investment proposals, then evaluating the attractiveness of these cash flows relative to the project’s costs. This chapter focuses on the various decision criteria. It also examines how to deal with complications in the capital budgeting process, including mutually exclusive projects and capital rationing. |
N/A |
| 11) |
Capital budgeting involves the decision-making process with respect to investment in fixed assets; specifically, it involves measuring the incremental cash flows associated with investment proposals, then evaluating the attractiveness of these cash flows relative to the project’s costs. This chapter focuses on the various decision criteria. It also examines how to deal with complications in the capital budgeting process, including mutually exclusive projects and capital rationing. |
N/A |
| 12) |
N/A |
N/A |
| 13) |
Financial Leverage, Operational Leverage, Combined Leverage, Break Even Analysis |
N/A |
| 14) |
All subjects will be reviewed depending on the student's demands |
N/A |
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Program Outcomes |
Level of Contribution |
| 1) |
The student acquires theoretical and practical knowledge related to his field at a basic level. |
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| 2) |
The student owns information about moral discipline and ethical rules related to his field. |
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| 3) |
The student uses theoretical and practical knowledge related to his field at a basic level; basic fundamental computer programs and related technologies. |
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| 4) |
The student manages a duty independently by using the knowledge about his field at a basic level. |
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| 5) |
The student evaluates the knowledge about his field at a basic level with a critical approach, he designates his learning needs and directs his learning. |
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| 6) |
The student uses information and communication technologies with at least at basic level of European Computer Using Licence basic level of computer software which his field of study requires. |
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| 7) |
The student complies with and contributes to quality management and processes. |
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| 8) |
The student has sufficient consciousness about individual and public health, environmental protection and work safety issues. |
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| 9) |
The student acts in accordance with laws, regulations, legislations and professional ethics related to individual duties, rights and responsibilities. |
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BAHÇEŞEHİR UNIVERSITY BİLGİ PAKETİ / DERS KATALOĞU
