MATHEMATICS
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
IF2221 Corporate Finance I Fall
Spring
3 0 3 4
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: Bachelor’s Degree (First Cycle)
Mode of Delivery: Face to face
Course Coordinator : Assist. Prof. BAHAR KÖSEOĞLU
Course Lecturer(s): Prof. Dr. NİYAZİ BERK
Prof. Dr. HAKKI ÖZTÜRK
Recommended Optional Program Components: None
Course Objectives: This is the first course of two consecutive corporate finance courses in the second year which aims to provide the student with the basic tools for making financial decisions. This course will introduce the student to basic financial theory and concepts of corporate finance. This course will also ensure an understanding of relationship between financial theory and its practices. The student is expected to learn all the basic tenets of financial management at the end of these two courses. In this course, more of the emphasis will be on financial algebra, the logic behind the valuation of fixed and variable income securities and basic financial ratios.

Learning Outcomes

The students who have succeeded in this course;
1. Gain comprehensive knowledge of the basic tenets of corporate finance
2. Learn financial algebra
3. Understood the valuation of fixed income securities
4. Acquired extensive knowledge of common stocks and dividend discount model
5. Analyse balance sheet and income statement

Course Content

corporate finance, financial statements, financial leverage and operating leverage, pricing of securities
Teaching methods of the course are “Lecture, Individual Study, Reading, Problem Solving, Discussion”

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Course Overview, Review of the Syllabus, and course requirement
2) Interest Rates: Real versus Nominal Simple and Compounded Interest Rates
3) Factors that Determine Interest Rates Time Value of Money, Present and Future Value
4) Annuity and Perpetuity, Concepts of Risk, Return and Discount Factor
5) What is Corporate Finance? Forms of Business Organization, The Goal of Financial Management, The Agency Problem, Shareholder Wealth Maximization, Financial Markets and the Corporation
6) Valuation of Fixed Income Securities Characteristics of Bonds and T-Bills, The Valuation of Bonds and T-bills, The Relationship Between Bond Prices and Interest Rates
7) Valuation of Fixed Income Securities Characteristics of Bonds and T-Bills, The Valuation of Bonds and T-bills, The Relationship Between Bond Prices and Interest Rates
8) Midterm
9) Valuation of Common Stocks How Common Stocks Are Traded, Basic Characteristics of Stocks, Preferred Stocks, Capitalization Rate, The Basic Issues about Common Stock Valuation
10) Dividend Based Stock Valuation Models, Gordon Dividend Growth Model
11) Overview of Financial Statements The Balance Sheet:Assets, Liabilities and Equity, Net Working Capital, Debt versus Equity Financing, Income Statement
12) Some Primary Concepts: Market Value, Book Value, Nominal Value, Asset Value, Net Asset Value Basic Finacial Ratios
13) Short Term Financial Management and Working Capital Management Short Term Financial Planning
14) Some Aspects of Short-Term Financial Policy, Short Term Borrowing, Cash Management, Credit and Receivables, Inventory Management

Sources

Course Notes / Textbooks: Principles of Corporate Finance by Brealey and Myres, 7th Edition.

Essentials of Corporate Finance by Ross, Westerfield and Jordan, 6th Edition.

Finansal Yönetim by Prof. Dr. Niyazi Berk (Turkish Book)




References: Other required documents will be uploaded in ITSLearning.

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Midterms 1 % 50
Final 1 % 50
Total % 100
PERCENTAGE OF SEMESTER WORK % 50
PERCENTAGE OF FINAL WORK % 50
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 13 3 39
Study Hours Out of Class 14 4 56
Midterms 1 2.5 2.5
Final 1 2.5 2.5
Total Workload 100

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) To have a grasp of basic mathematics, applied mathematics and theories and applications in Mathematics
2) To be able to understand and assess mathematical proofs and construct appropriate proofs of their own and also define and analyze problems and to find solutions based on scientific methods,
3) To be able to apply mathematics in real life with interdisciplinary approach and to discover their potentials,
4) To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself,
5) To be able to tell theoretical and technical information easily to both experts in detail and non-experts in basic and comprehensible way,
6) To be familiar with computer programs used in the fields of mathematics and to be able to use at least one of them effectively at the European Computer Driving Licence Advanced Level,
7) To be able to behave in accordance with social, scientific and ethical values in each step of the projects involved and to be able to introduce and apply projects in terms of civic engagement,
8) To be able to evaluate all processes effectively and to have enough awareness about quality management by being conscious and having intellectual background in the universal sense,
9) By having a way of abstract thinking, to be able to connect concrete events and to transfer solutions, to be able to design experiments, collect data, and analyze results by scientific methods and to interfere,
10) To be able to continue lifelong learning by renewing the knowledge, the abilities and the competencies which have been developed during the program, and being conscious about lifelong learning,
11) To be able to adapt and transfer the knowledge gained in the areas of mathematics ; such as algebra, analysis, number theory, mathematical logic, geometry and topology to the level of secondary school,
12) To be able to conduct a research either as an individual or as a team member, and to be effective in each related step of the project, to take role in the decision process, to plan and manage the project by using time effectively.