ENM3001 Finance for EngineersBahçeşehir UniversityDegree Programs INTERIOR ARCHITECTURE AND ENVIRONMENTAL DESIGNGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
INTERIOR ARCHITECTURE AND ENVIRONMENTAL DESIGN
Bachelor TR-NQF-HE: Level 6 QF-EHEA: First Cycle EQF-LLL: Level 6

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
ENM3001 Finance for Engineers Spring 2 2 3 6
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

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.

Learning Outcomes

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

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

Weekly Detailed Course Contents

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

Sources

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

Evaluation System

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

ECTS / Workload Table

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

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Setting up various spaces in national and international contexts, carrying out designs, planning and applications that could satisfy various user groups and respond various requirements in the field of Interior Architecture,
2) Analyzing the information gathered from the framework of actual physical, social and economical constraints and user requirements, and synthesizing these with diverse knowledge and considerations in order to create innovative spatial solutions,
3) Generating creative, innovative, aesthetic and unique spatial solutions by using tangible and abstract concepts,
4) Using at least one of the illustration and presentation technologies competently, that the field of interior architecture requires,
5) Reporting, presenting and transferring the design, practice and research studies to the specialists or laymen by using visual, textual or oral communication methods, efficiently and accurately,
6) Embracing and prioritizing man-environment relationships, user health, safety and security, and universal design principles in the field of interior architecture,
7) Design understanding and decision making that respects social and cultural rights of the society, cultural heritage and nature,
8) Being aware of national and international values, following developments and being equipped about ethical and aesthetical subjects in the fields of interior architecture, design and art,
9) Having absolute conscious about legal regulations, standards and principles; and realizing professional ethics, duties and responsibilities in the field of Interior Architecture,