LOGISTIC MANAGEMENT | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
ENM3001 | Finance for Engineers | Spring Fall |
2 | 2 | 3 | 6 |
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
Language of instruction: | English |
Type of course: | Non-Departmental Elective |
Course Level: | Bachelor’s Degree (First Cycle) |
Mode of Delivery: | Face to face |
Course Coordinator : | Dr. Öğr. Üyesi MEHMET EMİN YILDIZ |
Course Lecturer(s): |
Dr. Öğr. Üyesi BAŞAK AKDEMİR Prof. Dr. YAMAN ÖMER ERZURUMLU |
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. |
The students who have succeeded in this course; I. Understand the general overview of financial management and concepts of financial markets, II. Evaluating and analyzing the financial statements, ratio analysis, leverage and break even analysis, III. Gain the ability to construct proforma statements; conduct cash budget and free cash flow analysis IV. Understand and gain ability to use time value of money in various ways for financial decision making, V. Learn the tools of short term financial management and understand the dynamics of short term financial management. VI. Gain the ability to capture the essence of not advanced financial news and articles VII. Understand the dynamics of bond market and stock market VIII. Gain skills to evaluate a project by using capital budgeting techniques (NPV etc.) IX. Determining the appropriate technique and apply in order to evaluate a standalone project or a company |
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 |
Course Notes / Textbooks: | Keown etal., Foundations of Finance 12th ed., Pearson, 2019 |
References: | Block and Hirth, Foundations of Financial Management, McGraw Hill, 2011 Gitman L., Principles of Managerial Finance, Pearson, 2006 Brealey, Myers,Marcus "Fundamentals of Corporate finance" 11th edition MacGraw Hill |
Semester Requirements | Number of Activities | Level of Contribution |
Attendance | 1 | % 17 |
Homework Assignments | 8 | % 14 |
Midterms | 1 | % 15 |
Final | 1 | % 40 |
Paper Submission | 3 | % 14 |
Total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 60 | |
PERCENTAGE OF FINAL WORK | % 40 | |
Total | % 100 |
Activities | Number of Activities | Duration (Hours) | Workload |
Course Hours | 13 | 2 | 26 |
Application | 13 | 2 | 26 |
Study Hours Out of Class | 12 | 3 | 36 |
Homework Assignments | 8 | 2 | 16 |
Quizzes | 6 | 1 | 6 |
Midterms | 1 | 3 | 3 |
Paper Submission | 3 | 8 | 24 |
Final | 1 | 3 | 3 |
Total Workload | 140 |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | To correctly identify the problems and to be able to ask the correct questions | |
2) | To have the ability for problem solving and to utilize analytical approach in dealing with the problems | |
3) | To be able to identify business processes and use them to increase the productivity in logistics system. | |
4) | To be fully prepared for a graduate study | 2 |
5) | Awareness of the new advancements in Information and Communications Technologies (ICT) and to be able to use them in logistics management effectively. internet and the electronic world | |
6) | To understand the components of logistics as well as the importance of the coordination among these components. | |
7) | To know the necessary ingredients for improving the productivity in business life | |
8) | To think innovatively and creatively in complex situations | 4 |
9) | To act and think both regionally and internationally | |
10) | To understand the demands and particular questions of globalization | |
11) | Aware of the two way interaction between globalization and logistics; as well as to use this interaction for increasing the productivity. | |
12) | To be able to use at least one foreign language both for communication and academic purposes | 2 |
13) | To acquire leadership qualities but also to know how to be a team member | |
14) | To understand the importance of business ethics and to apply business ethics as a principal guide in both business and academic environment |