IF2221 Corporate Finance IBahçeşehir UniversityDegree Programs COMPUTER ENGINEERINGGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
COMPUTER ENGINEERING
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 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: Non-Departmental Elective
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) Adequate knowledge in mathematics, science and computer engineering; the ability to use theoretical and practical knowledge in these areas in complex engineering problems.
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply appropriate analysis and modeling methods for this purpose. 2
3) Ability to design a complex system, process, device or product to meet specific requirements under realistic constraints and conditions; ability to apply modern design methods for this purpose. 3
4) Ability to develop, select and use modern techniques and tools necessary for the analysis and solution of complex problems encountered in computer engineering applications; ability to use information technologies effectively.
5) Ability to design, conduct experiments, collect data, analyze and interpret results for the study of complex engineering problems or computer engineering research topics. 3
6) Ability to work effectively within and multi-disciplinary teams; individual study skills. 2
7) Ability to communicate effectively in verbal and written Turkish; knowledge of at least one foreign language; ability to write active reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8) Awareness of the necessity of lifelong learning; ability to access information, to follow developments in science and technology and to renew continuously.
9) To act in accordance with ethical principles, professional and ethical responsibility; information on the standards used in engineering applications.
10) Information on business practices such as project management, risk management and change management; awareness of entrepreneurship and innovation; information about sustainable development.
11) Knowledge of the effects of engineering practices on health, environment and safety in the universal and social scale and the problems of the era reflected in engineering; awareness of the legal consequences of engineering solutions.