| MBA (ENGLISH, NON-THESIS) | |||||
| Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| FIN5228 | Financial Management | Fall | 3 | 0 | 3 | 8 |
| 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: | Departmental Elective |
| Course Level: | |
| Mode of Delivery: | Face to face |
| Course Coordinator : | Assist. Prof. BORA ERDAMAR |
| Course Lecturer(s): |
Prof. Dr. MURAT AKBALIK Assist. Prof. AYŞE DİLARA ALTIOK YILMAZ Assist. Prof. AYSE ERTUĞRUL BAYKAN |
| Recommended Optional Program Components: | None |
| Course Objectives: | This is a graduate course. So we will have a deeper look to the discussions and concepts in finance. There will essentially be two major subjects that we will cover in the course .The first of them is an in-depth analysisi of investment decisions with a review of essential concepts such as stochastic domiinance, investment decisions under uncertainty, mean-variance criterion and efficient frontier as well as a review of CAPM. Some of these concepts may already be familiar to you but we will focus on more technical aspects of these issues such as covering the mathematical background, discussing the assumptions used in the models and the empirical tests of these models. The second part mainly focuses capital budgeting with a detailed analysis of hurdle rates, return measurement of independent or co-related investment projects as well as a discussion of capital structure starting with Modigliani-Miller Hypothesis. We will also discuss the practical problems that are conftronted in practical applications. |
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The students who have succeeded in this course; I. Understands capital budgeting techniques to evaluate a firm’s investment opportunities II. Calculates a firm’s cost of capital III. Learns the impact of a firm’s dividend policy on its share value IV. Knows the impact of debt/equity decisions on a firm’s value V. Understands the difference between operating risk and financial risk VI. Learns how derivatives can be used for hedging VII. Understands the reasons for leasing VIII. Applies financial analysis techniques within a real life environment IX. Holds a basic knowledge about financial management |
| 1. Getiri Oranları, Geometrik Getiri, Süre, Getiri Eğrisi 2. Kesinlik ve Belirsizlik Altında Yatırım Kararları; Fayda Fonksiyonları, Birinci ve İkinci Dereceden Stokastik Baskınlık 3. Ortalama-Varyans Kriteri ve Etkin Sınır 4. Tek Endeks Modeli; CAPM'in Türetilmesi; CAPM Varsayımları 5. Beta Hesaplaması; Sistematik ve Sistematik Olmayan Riskin Ölçülmesi 6. CAPM'e Yönelik Bilimsel Eleştiriler, CAPM Testleri, Roll’ün Eleştirisi, APT 7. Risk Ölçümü ve Eşik Getiri Oranları 8. Bağımsız Projeler İçin Yatırım Getirisinin Ölçülmesi 9. Birbirine Bağlı Projeler İçin Yatırım Getirisinin Ölçülmesi 10. Sermaye Yapısı ve Yatırım Finansmanında Borç/Özsermaye Dengesi 11. Sermaye Yapısına İlişkin İleri Konular; Optimal Borç Oranı ve Kaldıraç Sorunları 12. Yatırım Uygunluk Analizine Alternatif Yaklaşımlar 13. Yatırım Uygunluk Analizinde Pratik Sorunlar |
| Week | Subject | Related Preparation |
| 1) | Introduction | |
| 2) | Rates of Return, Geometric Return, Duration, Yield Curve | |
| 3) | Investment Decisions Under Certainty and Uncertainty; Utility Functions, First and Second Degree Stochastic Dominance | |
| 4) | Mean-Variance Criterion and Efficient Frontier | |
| 5) | Single-Index Model; Derivation of CAPM; Assumptions of CAPM | |
| 6) | Calculation of Beta; Quantifying the Systematic and Unsystematic Risk | |
| 7) | Scientific Criticisms of CAPM, CAPM Tests, Roll’s Critique, APT | |
| 8) | Risk Measurement and Hurdle Rates | |
| 9) | Measuring Return on Investments for Independent Projects | |
| 10) | Measuring Return on Investments for Co-Related Projects | |
| 11) | Capital Structure and Debt/Equity Trade-Off in Investment Financing | |
| 12) | Further Issues of Capital Structure; Optimal Debt Ratio and Leverage Issues | |
| 13) | Alternative Approaches to Investment Feasibility Analysis | |
| 14) | Practical problems of Investment Feasibility Analysis |
| Course Notes / Textbooks: | |
| References: | Ross, Stephen A., Randolph W. Westerfield, and Bradford D. Jordan, Corporate Finance Fundamentals, Mc Graw Hill, 8th Edition, 2008. |
| Semester Requirements | Number of Activities | Level of Contribution |
| Midterms | 1 | % 40 |
| Final | 1 | % 60 |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 40 | |
| PERCENTAGE OF FINAL WORK | % 60 | |
| Total | % 100 | |
| Activities | Number of Activities | Workload |
| Course Hours | 14 | 42 |
| Study Hours Out of Class | 15 | 152 |
| Midterms | 2 | 4 |
| Final | 1 | 2 |
| Total Workload | 200 | |
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution | |
| 0) | Developing strategies, policies and implementation plans to address the issues in the fields of business administration and management, and evaluating the consequences according to the processes of quality, | |
| 1) | Broadening and deepening the knowledge about business administration at the master’s level based on the undergraduate level qualifications, | |
| 1) | 1) Developing strategies, policies and implementation plans to address the issues in the fields of business administration and management, and evaluating the consequences according to the processes of quality, 2) Broadening and deepening the knowledge about business administration at the master’s level based on the undergraduate level qualifications, 3) Comprehending the interaction across various disciplines related to the field of business administration, and evaluating the knowledge and skills gained on an interdisciplinary dimension, 4) Using theoretical and practical information and skills gained at the expertise level in the field business administration, 5) Analyzing problems requiring expertise in the field business administration by using scientific research methods, 6) Evaluating a problem in the business administration field independently, developing a way for solution, solving the problem and evaluating the results, 7) Developing new strategic approaches to solve unforeseen complex issues in the business administration field through integrative and creative elaboration, 8) Evaluating the knowledge related to the field of business administration through critical perspective, 9) Communicating systematically the recent developments and one’s individual studies in the field of business administration to the groups within and outside the field via written, oral and visual presentations, 10) Analyzing the social relations and the norms through critical perspective, developing effective relations, training leaders who are capable of sustaining these social relations, applying teamwork and managing risk and change in the field of business administration. | |
| 2) | Comprehending the interaction across various disciplines related to the field of business administration, and evaluating the knowledge and skills gained on an interdisciplinary dimension, | |
| 3) | Using theoretical and practical information and skills gained at the expertise level in the field business administration, | |
| 4) | Analyzing problems requiring expertise in the field business administration by using scientific research methods, | |
| 5) | Evaluating a problem in the business administration field independently, developing a way for solution, solving the problem and evaluating the results, | |
| 6) | Developing new strategic approaches to solve unforeseen complex issues in the business administration field through integrative and creative elaboration, | |
| 7) | Evaluating the knowledge related to the field of business administration through critical perspective, | |
| 8) | Communicating systematically the recent developments and one’s individual studies in the field of business administration to the groups within and outside the field via written, oral and visual presentations, | |
| 9) | Analyzing the social relations and the norms through critical perspective, developing effective relations, training leaders who are capable of sustaining these social relations, applying teamwork and managing risk and change in the field of business administration. |