IF2221 Corporate Finance IBahçeşehir UniversityDegree Programs LAWGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
LAW
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
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) List the relations between concepts and institutions related to various legal disciplines and this concepts and institutions.
2) Have the knowledge of legal methodology and methods of comment.
3) Comment the modern legal gains with the historical knowledge.
4) Have the knowledge of philosophical currents of thought which are the bases of legal rules.
5) Have the knowledge of legal regulations, judicial decisions and the scientific evaluations related to them.
6) Resolve the juridical disagreements in light of legal acts, juridical decisions and doctrine.
7) Use at least one foreign language as scientific language.
8) Have the knowledge of the political and juridical foundation of the state.
9) Have the knowledge of the historical development of the rights of individuals and societies and of the basic documents which are accepted throughout this development.
10) Have the ability to resolve the disagreements which can violate the social order in national or international level.
11) Have the ability to prevent the juridical disagreements between individuals.
12) Have the knowledge of international and comparative law systems.
13) Have the knowledge of the construction and the conduct of the national and international commercial relations.
14) Use Turkish in an efficient way both verbal and written.
15) Have the professional and ethical responsibility.
16) Have the knowledge on the European Union’s legislation and institutions.
17) Have the knowledge on juridical regulations and applications related to economical and financial mechanisms.
18) Have the knowledge of the operation of the national and the international judicial bodies.