PUBLIC RELATIONS AND PUBLICITY
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
IB2221	Corporate Finance	Spring Fall	3	0	3	7

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 :	Prof. Dr. NİYAZİ BERK
Course Lecturer(s):	Dr. Öğr. Üyesi 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. 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

1st Week: Introduction to Corporate Finance, What is Corporate Finance, The Goal of Financial Management, Financial Management Decisions, Capital Budgeting, Capital Structure, Working Capital Management.

2nd Week: Overview of Financial Statements: The Balance Sheet: Assets, Liabilities and Owners’ Equity, Net Working Capital, Debt versus Equity, Income Statement.

3rd Week: Some Primary Concepts: Market Value, Book Value, Nominal Value, Asset Value, Net Asset Value. Financial Leverage, Operating Leverage.

4th Week: Short Term Financial Management and Working Capital Management: Short Term Financial Planning, Some Aspects of Short-Term Financial Policy.

5th Week: Short Term Borrowing, Cash Management, Credit and Receivables, Inventory Mangement: The Economic Order Quantity Model

6th Week: Time Value of Money, Present Value, Future Value, Annuity, Perpetuity. Concepts of Risk, Return and Discount Factor

7th Week: Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills

8th Week: The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.

9th Week: Valuation of Common Stocks: Basic Characteristics of Stocks, Capitalization Rate, The Basic Issues About Common Stock Valuation, Dividend Based Stock Valuation Models (DDM)

10th Week: Cost Of Capital: Cost of Debt, Cost of Equity, Weighted Average Cost of Capital (WACC)

11th Week: 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)

12th Week: 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.

13th Week: 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.

14th Week: Cash-Flow Analysis: Preparing a Cash-Flow Chart, Project Feasibility Analysis with DCF, Sensitivity Analysis, Break-Even Analysis.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	1st Week: Introduction to Corporate Finance, What is Corporate Finance, The Goal of Financial Management, Financial Management Decisions, Capital Budgeting, Capital Structure, Working Capital Management.
2)	2nd Week: Overview of Financial Statements: The Balance Sheet: Assets, Liabilities and Owners’ Equity, Net Working Capital, Debt versus Equity, Income Statement.
3)	3rd Week: Some Primary Concepts: Market Value, Book Value, Nominal Value, Asset Value, Net Asset Value. Financial Leverage, Operating Leverage.
4)	4th Week: Short Term Financial Management and Working Capital Management: Short Term Financial Planning, Some Aspects of Short-Term Financial Policy.
5)	5th Week: Short Term Borrowing, Cash Management, Credit and Receivables, Inventory Mangement: The Economic Order Quantity Model
6)	6th Week: Time Value of Money, Present Value, Future Value, Annuity, Perpetuity. Concepts of Risk, Return and Discount Factor
7)	7th Week: Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills
8)	8th Week: The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.
9)	9th Week: Valuation of Common Stocks: Basic Characteristics of Stocks, Capitalization Rate, The Basic Issues About Common Stock Valuation, Dividend Based Stock Valuation Models (DDM)
10)	10th Week: Cost Of Capital: Cost of Debt, Cost of Equity, Weighted Average Cost of Capital (WACC)
11)	11th Week: 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)	12th Week: 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)	13th Week: 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.

Sources

Course Notes / Textbooks:	Essentials of Corporate Finance by Ross, Westerfield and Jordan, 6th Edition.
References:	Principles of Corporate Finance by Brealey and Myres, 7th Edition. Berk,N. Finansal Yönetim, 10. baskı, İstanbul.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Midterms	1	% 40
Final	1	% 50
Total		% 90
PERCENTAGE OF SEMESTER WORK		% 40
PERCENTAGE OF FINAL WORK		% 50
Total		% 90

ECTS / Workload Table

Activities	Number of Activities	Workload
Course Hours	14	41
Study Hours Out of Class	15	28
Final	1	28
Total Workload		97

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 prepare the students to become communication professionals by focusing on strategic thinking, professional writing, ethical practice and innovative use of traditional and new media
2)	To be able to create effective public relations plans using fundamental planning components that include situation analysis, public profile, objectives, strategies and tactics.
3)	To be able to apply theoretical concepts related to mass communication, consumer behavior, psychology, persuasion,sociology, marketing, and other related fields to understand how public realtions works.
4)	To be able to have the ability to explain and identify problems associated with the relationships between events and facts in the areas of public relations, persuasive communication, communication management, corporate communications.
5)	To be able to analyze primary and secondary research data in the fields of perception and reputation management and corporate communication practices.
6)	To be able to search, write, and design articles, newsletters, and fliers, brochures, and announcements, in styles and formats appropraite various audiences, mediums and settings.
7)	To be able to apply the underlying theories of communication and the necessities of work safety to different types of public relations processes and campaigns.
8)	To be able to develop creative and persuasive management skills in terms of reputation, employee relations, leadership and similar corporate practices.
9)	To be able to take responsibility in an individual capacity or as a team in generating solutions to given scenarios which can occur in public relations processes.
10)	To be able to understand how an organizational culture works and how employees and leaders create messages as a communication tool.
11)	To be able to critically discuss and interpret theories, concepts, methods, tools and ideas in the field of public relations.
12)	To be able to to use information, communication technologies and computer software with the required level of public relations, marketing communication, persuasive communication, communication management, corporate communications.
13)	To be able to explain and describe business marketing activities, economics, business law and global business practices.
14)	To be able to recognize national and international, social and cultural dimensions of public relations.