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 |
Language of instruction: | English |
Type of course: | Must Course |
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. |
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 |
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 |