| FINANCIAL TECHNOLOGY (ENGLISH, NONTHESIS) | |||||
| 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 | |
| 1) | Graduates of the Financial Technology master's program gain the ability to understand, analyze, and shape how the traditional world of finance is being transformed by emerging technologies such as Blockchain and Artificial Intelligence. | 3 |
| 2) | Being able to develop and deepen their knowledge at the level of expertise in the same or a different field, based on undergraduate level qualifications. | 3 |
| 3) | To be able to interpret and create new knowledge by integrating the knowledge gained in the field with the knowledge from different disciplines. | 5 |
| 4) | To be able to systematically transfer current developments in the field and their own studies to groups in and outside the field, in written, verbal and visual forms, by supporting them with quantitative and qualitative data. | 4 |
| 5) | To be able to develop strategy, policy and implementation plans in the fields related to the field and to evaluate the obtained results within the framework of quality processes. | 4 |
| 6) | To be able to develop new strategic approaches for the solution of complex and unpredictable problems encountered in applications related to the field and to produce solutions by taking responsibility. | 4 |
| 7) | To be able to use the theoretical and applied knowledge at the level of expertise acquired in the field. | 3 |