IF2221 Corporate Finance IBahçeşehir UniversityDegree Programs INTERNATIONAL FINANCEGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
INTERNATIONAL FINANCE
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 3 0 3 4

Basic information

Language of instruction: English
Type of course: Must Course
Course Level: Bachelor’s Degree (First Cycle)
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s): Dr. Öğr. Üyesi HAKKI ÖZTÜRK
Prof. Dr. NİYAZİ BERK
Prof. Dr. ÜMİT EROL
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. It will cover some of the theory and practice of decision-making within the corporation More of the emphasis will be on financial valuation, capital budgeting and cash flow analysis.

Learning Outcomes

The students who have succeeded in this course;
I.to be able to understand what corporate finance is and how financial managers decide.
II. to be able to analyze the financial statements of a firm.
III.to be able to identify market cap, financial leverage and operating leverage.
IV.to be able to figure out the essentials of short term financial policy.
V.to be able to understand the logic behind the pricing of securities.
VI.to be able to understand weighted average cost of capital
VII.to be able to evaluate investment projects with capital budgeting methods.

Course Content

corporate finance, financial statements, financial leverage and operating leverage, pricing of securities

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction to Corporate Finance, What is Corporate Finance, The Goal of Financial Management, Financial Management Decisions, Capital Budgeting, Capital Structure, Working Capital Management.
2) Overview of Financial Statements: The Balance Sheet: Assets, Liabilities and Owners’ Equity, Net Working Capital, Debt versus Equity, Income Statement.
3) Some Primary Concepts: Market Value, Book Value, Nominal Value, Asset Value, Net Asset Value. Financial Leverage, Operating Leverage.
4) Short Term Financial Management and Working Capital Management: Short Term Financial Planning, Some Aspects of Short-Term Financial Policy.
5) Short Term Borrowing, Cash Management, Credit and Receivables, Inventory Mangement: The Economic Order Quantity Model
6) Time Value of Money, Present Value, Future Value, Annuity, Perpetuity. Concepts of Risk, Return and Discount Factor
7) Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.
8) Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.
9) Valuation of Common Stocks: Basic Characteristics of Stocks, Capitalization Rate, The Basic Issues About Common Stock Valuation, Dividend Based Stock Valuation Models (DDM)
10) Cost Of Capital: Cost of Debt, Cost of Equity, Weighted Average Cost of Capital (WACC)
11) Capital Budgeting: Project Appraisal Essentials, Free Cash Flow Concept, Earnings Before Interest and Tax (EBIT), Corporate Tax, Non-Cash Net Working Capital, Depreciation, Amortization, Capital Expenditures (Capex)
12) The Process of Evaluating Capital Budgeting Projects: Payback Rule, Accounting Rate of Return (ARR), Discounted Payback, Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, Conflicts Between NPV and IRR and How to Resolve These Conflicts.
13) The Process of Evaluating Capital Budgeting Projects: Payback Rule, Accounting Rate of Return (ARR),Discounted Payback, Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, Conflicts Between NPV and IRR and How to Resolve These Conflicts.
14) Cash-Flow Analysis: Preparing a Cash-Flow Chart, Project Feasibility Analysis with DCF, Sensitivity Analysis, Break-Even Analysis.

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.

References: Mevcut Değil

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Homework Assignments 1 % 10
Midterms 1 % 40
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 14 3 42
Homework Assignments 1 10 10
Midterms 1 25 25
Final 1 35 35
Total Workload 112

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 correctly identify the problems and to be able to ask the correct questions 5
2) To have the ability for problem solving and to utilize analytical approach in dealing with the problems of finance 5
3) To understand and grasp the full details of theoretical arguments and counter arguments 4
4) To be fully prepared for a graduate study in finance and to have lifelong learning awareness 5
5) To be able to apply theoretical principles of finance to the realities of practical business life 5
6) To develop solutions for managerial problems by understanding the requirements of international financial markets 4
7) To think innovatively and creatively in complex situations 4
8) To be able to make decisions both locally and internationally by knowing the effects of globalization on business and social life 3
9) To have the competencies of the digital age and to use the necessary financial applications 4
10) To be able to use at least one foreign language both for communication and academic purposes 3
11) To understand the importance of business ethics and to take decisions by knowing the legal and ethical consequences of their activities in the academic world and business life 3
12) To develop an objective criticism in business and academic life and having a perspective to self-criticize 3