FINANCIAL TECHNOLOGY (ENGLISH, NONTHESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

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.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Prof. Dr. ÜMİT EROL
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.

Learning Outcomes

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

Course Content

Weekly Detailed Course Contents

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

Sources

Course Notes / Textbooks:
References: Ross, Stephen A., Randolph W. Westerfield, and Bradford D. Jordan, Corporate Finance Fundamentals, Mc Graw Hill, 8th Edition, 2008.

Evaluation System

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

ECTS / Workload Table

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

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution