MEDICINE
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	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)	Integrates the knowledge, skills and attitudes acquired from basic and clinical medical sciences, behavioral sciences and social sciences, and uses them in health service delivery.
2)	In patient management, shows a biopsychosocial approach that takes into account the socio-demographic and sociocultural background of the individual, regardless of language, religion, race and gender.
3)	In the provision of health services, prioritizes the protection and development of the health of individuals and society.
4)	Taking into account the individual, societal, social and environmental factors affecting health; does the necessary work to maintain and improve the state of health.
5)	By recognizing the characteristics, needs and expectations of the target audience, provides health education to healthy/sick individuals and their relatives and other healthcare professionals.
6)	Shows a safe, rational and effective approach in health service delivery, prevention, diagnosis, treatment, follow-up and rehabilitation processes.
7)	Performs invasive and/or non-invasive procedures in diagnosis, treatment, follow-up and rehabilitation processes in a safe and effective way for the patient.
8)	Provides health services by considering patient and employee health and safety.
9)	In the provision of health services, takes into account the changes in the physical and socioeconomic environment on a regional and global scale, as well as the changes in the individual characteristics and behaviors of the people who apply to it.
10)	Takes good medical practice into account while carrying out his/her profession.
11)	Fulfills its duties and obligations within the framework of ethical principles, rights and legal responsibilities required by its profession.
12)	Demonstrates decisive behavior in providing high-quality health care, taking into account the integrity of the patient.
13)	Evaluates his/her performance in his/her professional practice by considering his/her emotions and cognitive characteristics.
14)	Advocates improving the provision of health services by considering the concepts of social reliability and social responsibility for the protection and development of public health.
15)	Can plan and carry out service delivery, training and consultancy processes related to individual and community health in cooperation with all components for the protection and development of health.
16)	Evaluates the impact of health policies and practices on individual and community health indicators and advocates increasing the quality of health services.
17)	The physician attaches importance to the protection of his/her own physical, mental and social health, and does what is necessary for this
18)	Shows exemplary behavior and leads the healthcare team during service delivery.
19)	Uses resources cost-effectively, for the benefit of society and in accordance with the legislation, in the planning, implementation and evaluation processes of health services in the health institution he/she is the manager of.
20)	Establishes positive communication within the health team it serves and assumes different team roles when necessary.
21)	Is aware of the duties and responsibilities of the health workers in the health team and acts accordingly.
22)	In the professional practices, works in harmony and effectively with the colleagues and other professional groups.
23)	Communicates effectively with patients, their relatives, healthcare professionals, other professional groups, institutions and organizations.
24)	Communicates effectively with individuals and groups that require a special approach and have different socio-cultural characteristics.
25)	In the diagnosis, treatment, follow-up and rehabilitation processes, shows a patient-centered approach that associates the patient with the decision-making mechanisms.
26)	Plans and implements scientific research, when necessary, for the population it serves, and uses the results and/or the results of other research for the benefit of the society.
27)	Reaches and critically evaluates current literature knowledge about his/her profession.
28)	Applies the principles of evidence-based medicine in clinical decision making.
29)	Uses information technologies to increase the effectiveness of its work on health care, research and education.
30)	Effectively manages individual work processes and career development.
31)	Demonstrates skills in acquiring and evaluating new knowledge, integrating it with existing knowledge, applying it to professional situations and adapting to changing conditions throughout professional life.
32)	Selects the right learning resources to improve the quality of the health service it offers, organizes its own learning process